HomeInvesting NewsThe Reasons Behind Monday's Spike in Ford Shares

The Reasons Behind Monday’s Spike in Ford Shares

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Ford (NYSE:F)

As a result of the company’s efforts to establish itself as a frontrunner in the electric vehicle (EV) market, shares of Ford (NYSE:F) increased by more than two percent first thing Monday morning. As of 11:45 in the morning, the stock was trading with a gain of 1.1%. ET.

Then what?

Ford (NYSE:F) is making steady progress toward its goal of directly challenging Tesla (TSLA) for the leadership position in the electric vehicle (EV) sector. Recent examples of areas in which the corporation is attempting to improve both the dealer costs and the driver-assistance system offered by Ford. Ford (NYSE:F) announced late last week that it will provide its BlueCruise system, which allows drivers to remain hands-free while operating a vehicle on a highway, as an option on the 2023 Lincoln brand Corsair crossover.

According to Reuters, Ford CEO Jim Farley would issue a challenge to the company’s dealer network the next week, urging them to embrace a new strategy to cut $2,000 in costs associated with delivery and dealer operations. The objective is to improve our ability to compete with Tesla’s low-cost technology, which is sold to end users directly.

What’s Next?

Next week, Farley will travel to Las Vegas to participate in a conference with dealers where one of the primary topics will be how to achieve agreements on how dealers would sell Ford (NYSE:F) growing lineup of electric vehicles. Compared to Tesla vehicles, which do not have the additional costs associated with the dealership model, traditional automakers like Ford and others have a more challenging time competing with Tesla because of the costs associated with sales and delivery.

Ford (NYSE:F) primary objective is to increase the penetration of electric vehicles (EVs) into the mainstream market, where the price is a primary concern. This line of reasoning is one of the reasons why the business announced that it would offer its hands-free driver-assistance technology on new Lincoln vehicles, including the Corsair, which has a base price of approximately $40,000.

It remains to be seen whether or not the Ford (NYSE:F) technology and electric vehicle lineup will resonate with consumers with middle incomes. However, the company’s goal is to provide vehicles at a reasonable price while including as much technology as possible. Investors are relieved to see the company take actionable moves in the right way, and the company shares this sentiment.

Featured Image – Megapixl © Wolterk

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