According to a report published by Reuters, global automobile maker Ford Motor (F) plans to produce twice the number of its all-electric truck F-150 Lightning in anticipation of strong early demand ahead of the vehicle’s launch in 2022.
In its report, Reuters stated that people close to the development said Ford plans to manufacture over 80,000 units of F-150 Lightning in 2024 against its earlier target of $40,000 units. The company also plans to spend another $850 million to meet the production target.
Headquartered in Michigan, the company sells luxury cars under the Lincoln brand and automobiles and commercial vehicles under the Ford brand. (See Ford stock chart on TipRanks)
As per the new production plan, Ford will manufacture around 15,000 units of F-150 Lightning after its launch in 2022 and 55,000 units in 2023. After the second generation of the truck is launched in late 2025, the company plans to manufacture nearly 160,000 units per year.
Ford said, “We are excited with customer demand for the F-150 Lightning and already have 120,000 customer reservations, and we will continue to look for ways to break constraints and meet customer demand.”
Furthermore, the second generation of F-150 Lightning is likely to feature the company’s new TE1 truck architecture. Ford’s shares were up 1.1%, at the time of writing, in early trade on Tuesday.
Last month, Credit Suisse analyst Dan Levy maintained a Hold rating on the stock with a price target of $15 (14.7% upside potential).
The analyst said, “While we see a long path ahead in Ford’s transition to an electric vehicle (EV) world, we nevertheless believe Ford is increasingly demonstrating it is on the right track, with increased confidence in the financial outlook and its EV transition strategy.”
Overall, the stock has a Moderate Buy consensus rating based on 7 Buys, 5 Holds and 1 Sell. The average Ford Motor price target of $16.10 implies 23.2% upside potential. The company’s shares have gained 82.4% over the past year.
According to TipRanks’ Smart Score rating system, Ford scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.
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