A bit of good news for Ford investors

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Ford Motor Company (NYSE:F) Investors have had a lot of negative news to digest recently. 2024 has been a bumpy ride for Ford, with high warranty costs, advanced electric vehicles dominating the market in China and a cross-town rival. General Motors It seems to be rich and in every case it increases guidance.

But investors may have some good news to chew on: The Ford F-150 Lightning Race seems to be hitting a speed bump.

From the first view TeslaCritics and fans of the F-150’s rival, the Cybertruck, have come up with a unique design aimed at taking control of Ford’s historic sales and F-150 nameplate. Will the audience’s historic Detroit truck dominance filter over to EV nameplates, or will traditional gas truck consumer loyalty fade when it comes to EV trucks?

While this answer will take time to fully answer, there were mixed results when it came to the numbers, but when it came to critics, there wasn’t much left to say.

“I think the Cybertruck can now be considered a flop,” said Carl Breuer, chief analyst at IceCars. Automotive news. “Remember this will be the Tesla F-150. The new benchmark, the foundational vehicle to make the Tesla brand the most powerful, most profitable and most scalable.”

Some other commentators were more strident. Bernstein Analysts call CyberTruck “noise”: “We highlight CyberTruck as a huge strategic mistake and opportunity cost for Tesla, which took 4 years to develop and diverted attention away from low-cost offerings that Tesla is now desperate for.” According to Tony Sacconaghi, chief analyst for Demand, Yahoo! Finance

Despite harsh words and loud critics, the Cybertruck was the fifth most popular EV in the U.S. market last year, with nearly 39,000 units sold. That was good enough to move the Ford F-150 Lightning into sixth place with more than 33,500 units sold. And it was enough to push Rivian‘s R1T outside the top 10 with just under 11,100 units sold.

While Cybertruck managed to take the F-150’s lightning off the sales floor, there are subtle signs that demand for Tesla’s unique offering is waning. According to CNBC , Tesla has started offering discounts on its new Cybertruck cars, starting at $1,600 for the trim level and up to $2,600 for the low-mileage Demonstration versions.

There were other signs that demand was not as strong as investors had hoped. Tesla has launched a leasing program for the Cybertruck, hoping to pass the full $7,500 tax credit for some EV federal tax credits for leased vehicles that don’t have the same income and MSRP limits.

According to last October Business Insider, Factory workers were sent home or given extra cleaning jobs to fill scheduled work hours. Tesla reportedly fired Cybertruck line workers for several days in early December.

For Ford and Rivian investors, these early results, and early rumors of declining demand, are a good sign that their products will remain competitive in EV truck sales. Ford is less afraid of the Cybertruck’s unique design than some might think.

For Tesla investors, however, the doom and gloom may be somewhat overwhelming. Cybertruck failed to live up to the high expectations and early hype, although in 2011 Tesla is still dominating the market, although its global sales will grow slightly in 2024. In fact, the Tesla Model Y and Model 3 alone make up 28.6% and 14.6%, respectively. , respectively, US EV sales last year.

While the Cybertruck’s demise may be over the top, it’s still a bit of good news for Ford and Rivian. Investors Obviously he won’t be taking over anytime soon.

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Daniel Miller He has held positions at Ford Motor Company and General Motors. The Motley Fool has positions and recommends Tesla. The Motley Fool recommends General Motors and the following options: Long January 2025 $25 calls on General Motors. The Motley Fool has Disclosure Policy.

A bit of good news for Ford investors Originally published by The Motley Fool.