Ford Motor Co F revealed a key element to its electric vehicle strategy earlier this year when it revealed an electric version of its best-selling and most profitable pickup truck F-150 that would go on sale next year starting at just under $40,000 for the base version with a 230-mile range.
The legacy automaker’s Chairman Bill Ford had in May called the move a “defining moment for Ford” and a “watershed moment for the industry” during the launch event which took place at the 118-year old company’s Dearborn headquarters in Michigan and was broadcast live as well.
When it comes to pickup trucks, Ford's F-150 is the undisputed king in the country — a success that it aims to replicate with the electric successor as well. In general, U.S. car buyers have increasingly been abandoning sedans in favor of large sports utility vehicles and pickup trucks.
See Also: Ford Raises 5-Year EV Investment Target To $30B After High-Flying F-150 Lightning Launch
The F-150 Lightning pickup, which is expected to go on sale mid-next next year in the U.S., has secured over 160,000 potential reservations and is expected to compete with Amazon.com Inc AMZN-backed Rivian Automotive Inc’s R1T pickup trucks.
Reservations are not final orders but, hypothetically, even half of those $100 fully-refundable bookings could fetch Ford significant volumes for the Lightning.
Just months after the launch, Ford doubled its production target to 80,000 units for the F-150 Lightning pickup truck and said plans to spend an additional $850 million to meet that target.
See Also: Ford Said To Double Production Target, Spending On F-150 Lightning, Owing To High Demand
The new production target includes plans to build about 15,000 units next year after the electric truck's spring launch and 55,000 in 2023.
The automaker also plans to boost spending on electric vehicle development to $30 billion by 2025 under a new turnaround plan and expects 40% car sales by 2030 to be EVs.
The Investment: If you invested $1,000 on May 19 — when Ford unveiled the F-150 Lightning — in the stock, the investment would have fetched good returns as of Friday.
A $1,000 investment on May 19 would be worth $1,592.89 as of Friday, a jump of 59.28% for the investor.
Ford stock closed 0.67% lower at $19.29 a share on Friday. The stock has risen 126.41% YTD.
Photo: Courtesy of Ford
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