Why couldn’t Ford Stock move out of the slow lane on Tuesday? | Rare Techy
Technically speaking Ford (F 0.22%) the stock rose on Tuesday. However, its 0.2% increase was barely noticeable on the speedometer. The market’s hesitancy was linked to potentially ominous news from a rival that poses a growing competitive threat.
This morning, Reuters reported that the electric vehicle (EV) king Tesla (TSLA 0.12%) plans to begin mass production of its Cybertruck pickup truck. Citing “two people with knowledge of the plans,” the news agency said it should take place in late 2023. The company previously said it wanted the Cybertruck into early production by the middle of this year.
This could affect Ford, as the incumbent automaker has yet to launch mass production of its EV pickup, the F150 Lightning. This model has attracted a lot of interest among consumers and green vehicle advocates alike.
Neither Ford nor Tesla have yet commented on the Reuters article.
The Reuters story isn’t Cybertruck gospel, though. After all, the model has seen delays before.
Tesla CEO Elon Musk introduced it to much fanfare and hype in 2019, and mass production was apparently supposed to begin two years later. In the EV company’s latest analyst conference call, Musk claimed that he and his team were “on the last lap” with the futuristic-looking vehicle. However, he has made many statements and not all of them have turned out to be accurate.
However, it can catch fire under the Ford. That could spur the company to get the F-150 light out of the factories and onto customers’ roads faster. The emerging EV pickup segment is still ripe for the picking. The early mover advantage is – and will continue to be – crucial.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in Tesla and recommends it. The Motley Fool has a disclosure policy.