Ford (F) Stock Pops Into Focus Thanks to Official F-150 Lightning Launch

Ford (NYSE:F) will start regular production of its electric F-150 Lightning pickup truck today, and F stock is in the spotlight as a result. The trucks will be produced at the company’s Rouge electric vehicle (EV) center in Dearborn, Michigan. Ford seeks to produce 150,000 Lightning trucks per year at the EV center. Furthermore, the company had initially planned on building 40,000 trucks per year, but the popularity of the Lightning forced it to increase its production. Since last August, Ford has had to increase production goals twice. As of December, the automaker had received an impressive 200,000 reservations for the Lightning.

Ford (F) dealership sign against a blue sky.
Source: D K Grove / Shutterstock.com

F Stock: Ford Begins Production of Lightning F-150

The F-150 has been America’s best-selling truck for the past 45 years. As a result, the regular production of the electrified version of the F-150 could provide significant tailwinds for Ford. In addition, demand for the Lightning is so high that some customers may have to wait until next year to receive their order. This is due to high demand, the rising price of metals used in EV batteries and the semiconductor shortage. However, in an interview with The Verge, CEO Jim Farley stated, “I think we’re in good shape for batteries, and that seems to be the biggest gating issue to get to 150,000 units.”

In terms of the semiconductor shortage, Farley explained, “I don’t see the chips as a constraint for Lightning. I definitely see it as a constraint for our company. But we’re not going to produce 20 percent less Lightnings because we got 20 percent less chips for the F-series.”

Farley said that Ford will focus on satisfying reservations for the next six months to one year. After that, he wants to “aggressively market” the Lightning to interested truck buyers.

Ford to Report Earnings Tomorrow

Ford has confirmed that it will report Q1 earnings tomorrow after the bell. According to 17 analysts, the average estimate for earnings per share (EPS) is 37 cents. One year ago, Ford reported EPS of 89 cents. Meanwhile, analysts are expecting $31.24 billion in revenue, which would mark a year-over-year (YOY) decline of 6.9%.

For Q2 guidance, analysts are expecting EPS of 46 cents. In terms of revenue, analysts are expecting $34.95 billion, which would signify YOY growth of 44.2%.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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