• Ford’s F-150 Lightning is the market leader in electric pick-ups
• The release date of Tesla’s Cybertruck has been pushed back further
• Ford buys solar companies to build its own energy supply
The US automakers Tesla, Ford and General Motors (GM) are in fierce competition for market share in the electric car-Segment. Tesla’s first mover advantages, which gave Elon Musk’s group a comfortable lead for years, are disappearing at an accelerated pace and Ford is catching up – the traditional group is now the leader, especially in the field of pickup trucks, which are particularly popular in the USA, while the comparatively young company Tesla had to postpone the first release of the long-awaited Cybertruck again.
Electric pick-up from Ford market leader
Like General Motors and Rivian, Ford already has a pick-up with an electric drive in its range. Just a few weeks after the official start of sales, the F-150 Lightning is the market leader in the market segment that is important for the USA. Despite the model’s significant price increase as a result of supply chain difficulties and inflation, the F-150 Lightning continues to enjoy great popularity. The world’s first electric pick-up was Rivian’s R1T model, sales of which have picked up speed in recent weeks, as the latest quarterly report also underlines.
Tesla’s Cybertruck is still a long time coming
On the other hand, Tesla’s plans to bring the Cybertruck onto the market are less good. 2019 hired CEO Elon Musk already presented the futuristic-looking electric car and stated that 2021 would be the first year of sale. But nothing came of this due to a variety of obstacles such as supply chain problems, and the Cybertruck is now only expected to come onto the market in mid-2023. Ford has thus gained an important lead in the market for EV pickups, which Tesla now has to catch up with.
In contrast, Tesla’s Models 3 and Y are still absolute favorites: Tesla’s US market share in the EV segment is a full 75 percent. The Model 3 was by far the best-selling electric car in the US, ahead of the Model S, with 46,707 cars sold in the first quarter of 2022. The third most popular car, according to The Verge data, is the Ford Mustang Mach-E with 6,734 sold vehicles.
Ford CEO can’t help but dig at Musk
But Ford is catching up. Farley proudly announced at a presentation in Michigan last week: “We at Ford are truly on a mission to lead an electric and digital revolution for the many, not the few,” said the Ford CEO, alluding to the exclusive character of Tesla’s cars . “And I have to say that this wonderful Lightning, made right here in Dearborn, right here in Michigan, is a shining example for us at Ford and already the leading electric pickup truck in our industry in the United States is,” quotes “The Verge” the manager. Farley added defiantly, “Take that, Elon Musk.”
He was undoubtedly alluding to the fact that Ford brought the first functional electric pick-up onto the market much earlier than Tesla and was able to outperform ambitious competitors like Rivian. Significantly, Musk himself had frequently used the comparison between the F-150 Lightning and the Cybertruck. According to the tech billionaire, the success of the cybertruck must be measured against Ford’s pick-up. Incidentally, Musk countered the Ford CEO’s taunts on Twitter: “Prototypes are easy, production is hard, cash flow positive is excruciating,” he wrote a few days later.
Ford is working on solar power generation
A particular advantage of Tesla is that it started building its own energy production early on, while this area is still in its infancy at traditional companies such as Ford. That should change now. The Ford CEO recently presented the latest project of the traditional group: the development of its own solar energy division through the acquisition of DTE Energy. In Michigan, Farley last week announced the “largest purchase of renewable energy by a utility company in US history.” This should make Ford more independent of external energy sources. “This is a strategic investment in Michigan that will help us bring more clean energy to the grid faster,” Farley said at a news conference. “We don’t have to depend on oil price spikes in economic cycles to maintain full employment.” However, despite the acquisition, Ford remains a relatively small fish compared to other companies with their own energy infrastructure. In the future, Ford will produce 0.65 gigawatts of energy per year itself – at Amazon, for example, this value is 12.2 gigawatts.
Ford and Tesla shares under review
Tesla stock has taken a hit as shares of highly rated tech companies sell off. In addition, Tesla also showed a slowdown in growth dynamics, although the last quarterly report was still above analysts’ expectations and was accordingly well received by investors. That tailwind helped Tesla rally sharply from year-lows. The share is currently trading at a price of USD 919.69 (as of the closing price on August 16, 2022), which is significantly higher than in mid-June, but still noticeably below the record high of autumn 2021. The performance in the 2022 calendar year is therefore up to now at a disappointing -12.97 percent.
Ford stock also took a beating during the stock market’s weak first half — despite Ford stock’s lower valuation and the stable cash flow that Ford is generating from its traditional internal combustion engine division. Even if Ford is less dependent on future growth overall than is the case with newly emerging EV manufacturers such as Tesla or Rivian, Ford shares are also in an acute crisis situation. The recent decline in global car sales, which is also affecting other traditional car manufacturers such as Mercedes-Benz, BMW, Volkswagen and General Motors, is likely to be responsible for this. The year 2022 was extremely bad for the majority of auto shares, as can be seen from the performance of Ford shares. With a current share price of USD 16.42 (closing price on August 16, 2022), these are down a whopping 20.94 percent over the year.
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