Plant shutdown and large power reserve: why Ford’s quotes have increased

Shares of Ford Motor Company (F) rose 3.7% to $17.09 in trading on March 24. The increase in quotations occurred despite the suspension of factories in Germany. The announcement of a larger-than-expected power reserve for Ford electric pickups turned out to be more important for investors.

Ford has announced the temporary shutdown of two factories in Germany because of a shortage of electronic components. This put pressure on the quotes, but in the end, the auction ended in the green zone. The main reason was the regulators’ report on the power reserve indicators of F-150 Lightning electric pickups.

The test runs for EPA certification turned out to be even better than Ford claimed in the brochures. The “basic” versions of the F-150 Lightning XLT and Pro pickup showed a power reserve of about 370 km on a single charge. Three models with an enlarged battery (Platinum, XLT ER, Lariat ER) have a range of over 480 km. These are good indicators for a large and heavy car, and for the “top” versions, the power reserve is about 30 km more than Ford expected.

But the power reserve indicators turned out to be better than one of the major competitors — the pickup truck of Rivian Automotive (RIVN). Now that the cars are certified, Ford can use one of the major advantages, the power reserve, in an advertising campaign. Earlier, Ford announced the separation of the business — the production of electric vehicles will receive new infrastructure and major investments in long-term growth.

Electric commercial vehicles are the focus for Ford, as the company receives a significant part of its revenue from the sale of small trucks and minibuses. First, Ford electrified the F-series pickups as the most popular cars in this class in the world.