Why Ford Motor Company Shares Are Increasing Today

What happened

Actions of Ford Motor Company (NYSE: F) were up Tuesday morning after the company said it was taking additional steps to dramatically increase production of its upcoming F-150 Lightning electric pickup truck. As of 10:30 a.m. ET, Ford shares were up about 9.7% from Monday’s closing price.

So what

Ford said on Tuesday that it plans to increase its manufacturing capacity of the F-150 Lightning to a rate of 150,000 trucks per year by mid-2023.

That’s almost four times the production capacity Ford originally planned for the truck. Ford executives admitted that the huge interest in the F-150 Lightning took them by surprise, and the company has been working hard to ramp up production to meet demand.

Ford completes the last batch of pre-production F-150 Lightnings at its plant in Dearborn, Michigan. The trucks will be used for final quality testing. Image source: Ford Motor Company.

“With nearly 200,000 bookings, our teams are working hard and creatively to break production constraints to put more F-150 Lightning trucks in the hands of our customers,” said Kumar Galhotra, who heads the business units. Ford regional offices in North and South America. “Ford is doing everything possible to expand its operations and increase its production capacity. “

Investors should note that Ford said the 200,000 bookings were all from retail customers. The company has generated significant additional interest from its commercial fleet customers. It’s clear why Ford is pushing hard to ramp up production, even before the first Lightning has shipped.

Why is the stock exhausted today? Because Ford is wildly successful, and this is a version of its most profitable product – and it is an electric vehicle.

Now what

Ford said it was in the “final stages” of pre-production at the Michigan plant that will build the Lightning. The trucks under construction will be used for a final round of testing, helping Ford resolve any lingering quality issues before the plant begins building Lightnings for customers.

Ford also said the first wave of Lightning reservation holders will be asked to convert their reservations to orders starting this Thursday.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

About Frances R. Smith

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