DETROIT – Ford Motor on Tuesday mentioned it plans to nearly double annual production capability of its upcoming electrical F-150 pickup to 150,000 automobiles per yr by mid-2023, citing sturdy client demand.
The improve is a optimistic signal of demand for the F-150 Lightning in addition to electrical automobiles basically but in addition exhibits Ford considerably underestimated demand for the truck, inflicting it to now scramble to increase manufacturing of it. This is the second time Ford has mentioned it plans to double production of the automobile, which is due out within the spring. Initial output was set for about 40,000 models.
“The reception of this automobile has been completely unbelievable,” Kumar Galhotra, Ford president of the Americas & worldwide markets, mentioned Tuesday on CNBC’s “Squawk Box.”
Shares of Ford had been up by about 11% throughout noon buying and selling to a new 52-week excessive of $24.35 a share.
Referencing the production improve, BofA Securities analyst John Murphy elevated the agency’s value goal Tuesday for Ford to $26 a share, up from $22. In a observe to traders, he referred to as it “an encouraging proof level” within the firm’s beforehand introduced Ford+ turnaround technique.
Ford’s production plans come earlier than the automaker begins taking orders for the automobile on Thursday. The firm obtained about 200,000 nonbinding reservations for the truck earlier than it stopped taking the preorders last month.
At that point, Ford CEO Jim Farley instructed CNBC that the corporate was doing “whatever it takes” to double production capability for the F-150 Lightning.
“We had to cease reservations, we obtained so many,” Farley instructed CNBC’s Jim Cramer. “We stopped at 200,000, and people are orders. Hard orders.”
Ford mentioned will probably be implementing a “wave-by-wave reservation course of,” with reservation holders being requested to look ahead to an invite by way of e mail from Ford or to log into their Ford.com account over the following few months to place an order for his or her automobile.
This week is the ultimate pre-build part earlier than transitioning into mass production of F-150 Lightning vehicles for retail clients and F-150 Lightning Pro for industrial clients, the corporate mentioned.
Ford’s production plans come a day earlier than General Motors is scheduled to reveal an electrical model of its Chevrolet Silverado. The pickup is anticipated to compete extra instantly with the F-150 Lightning than its GMC Hummer EV, which just lately started shipping to consumers. The Silverado is not anticipated to go on sale till 2023.
Pricing for the F-150 Lightning, very similar to the standard pickup, has a wide range. A piece-oriented model of the truck will begin at $39,974. More consumer-centric fashions will begin at $52,974 and prime out at round $90,000.
– CNBC’s Michael Bloom contributed to this report.