Does Ford's Big EV Move Spell Trouble in Paradise?
One investment thesis for investors who are long on Ford Motor Company (NYSE: F) is that the company could quickly turn its $4.5 billion in annual electric vehicle (EV) losses into profits by 2026. That would be a big, and very valuable, amount of profits to be had. But one recent move by Ford calls into question whether the carmaker can indeed accomplish that goal by 2026.
F-150 Lightning sales rose 55% in 2023 to over 24,000 vehicles and it was America's best-selling EV pickup. It's one of the critical vehicles for Ford's EV ambitions, and arguably its most important when you consider the gasoline-powered F-Series trucks haul in a huge amount of Ford's profits.
Eventually, Ford needs that historic tow capacity to come from its F-150 Lightning EV truck. So the F-150 Lightning's importance to the Detroit automaker is what makes its recent move to cut capacity concerning to its goal of producing EVs profitably by 2026.
Source Fool.com
