Ford Can't Compete With Tesla Despite Doubling F-150 Lightning Production: Analyst

By virtue of it being the first mover, Tesla, Inc. TSLA commands a market-leading position in the EV industry, and while many analysts believe the fast-growing market is capable of supporting multiple players, Tesla's dominance will not end anytime soon, according to Louis Navellier, who runs Nevada-based asset manager Navellier & Associates.

Tesla Stays Ahead With Cheaper LFP Batteries: Ford Motor Company F is chief among the legacy automakers making a big push into the EV arena. Despite Ford aiming to double the production of its F-150 Lightning pickup truck, it still cannot compete with Tesla, Navellier said in his Daily Market Notes to investors.

Tesla has the advantage of using less efficient but cheaper iron-phosphate batteries manufactured by Chinese battery manufacturer CATL for its Giga Shanghai made vehicles, the analyst said. Adding that while Tesla uses Panasonic Corporation's PCRFY lithium-ion batteries for its U.S.-manufactured vehicles, CATL's batteries dominate its international sales.

Tesla's rivals are waiting for the production of lithium-ion batteries to increase, and in the process are losing potential EV sales, Navellier said. He expected this situation to continue until battery production catches up with demand.

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Navellier noted that at CES 2022 many new EVs, including General Motors Corporation's GM Chevy Silverado pickup truck and Daimler AG DDAIF unit's Mercedes Vision EQXX, which offers a 620-mile range, were announced.

Sony Group Corporation SONY also declared its foray into EVs, the analyst said.

"All of these new EVs are still two or more years away from production due to an acute shortage of lithium-ion batteries," Navellier said in the note.

At last check, Tesla shares were rallying 2.81% to $1,094.28.

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