Ford Stock (NYSE:F)
The Ford Mustang was the first. The Ford F-150 pickup truck comes next. Currently available as an electric vehicle is the Ford Explorer.
On Tuesday, Ford Motor Company (NYSE:F) presented the all-new, all-electric 2023 Ford Explorer that is intended for sale in the European market.
After the F-150 pickup truck, the legendary sport utility vehicle (SUV) made its debut in 1990 and has since become the company’s best-selling model overall.
Ford has made the choice to electrify its most iconic SUV in an effort to lower its carbon emissions and increase its commitment to environmental sustainability. But, for the time being, this action will only be taken with regard to the European market. This article digs into the specifics of Ford’s choice and what the implications of that decision are for both the corporation and its customers.
Electric vehicles (EVs) are becoming increasingly popular among automotive manufacturers throughout the world as a means of mitigating the effects of climate change and reducing their overall environmental impact. Ford, which is one of the major automakers in the world, is not falling behind in this competition in any way. Ford’s goal in electrifying its most recognizable SUV is to advance the cause of sustainable transportation while simultaneously providing customers with a high-performance automobile that is kind to the environment.
The number of Ford Explorers sold in the United States decreased to 207,673 in 2022 from 219,871 in 2021. (In the United States, Ford sold 653,957 F-series trucks in the year 2022)
Nevertheless, purchasers in the United States will have to be patient because the electric version of the Explorer is not yet available anywhere outside of Europe. The compact crossover-sized vehicle will be manufactured in Germany. It will have five seats. Ford’s news announcement did not provide information regarding the vehicle’s range or power, but the company did state that the battery can be charged from 10% to 80% using high-speed, direct current EV chargers in around 25 minutes.
Ford anticipates that there will be 500,000 charging points available across Europe by the following year. There are around 148,000 public charging outlets in the U.S., according to the Energy Department. During the course of the last few years, the United States has been adding approximately 20,000 new ports per year.
The electric Explorer adds to Ford’s EV lineup, which includes the Mustang Mach E, F-150 Lightning, and electric Transit van. More than 61,000 all-electric vehicles were sold in the United States by Ford in 2022, representing an increase of around 125% year over year.
The expansion of that lineup was essential to that growth. In the year 2022, Ford began offering for sale the F-150 Lightning and the electric Transit van.
In the future years, Ford intends to sell a significant number of electric vehicles. At a Deutsche Bank investment conference in March, Bob Holycross, Ford’s vice president of sustainability, environment, and safety Engineering, stated that the automaker is “on schedule for a run rate of over 600,000 EVs by the end of this year and 2 million by late 2026.” “The response from customers to these automobiles has been nothing short of astounding.”
Ford believes the response to the new electric Explorer is equally as great.
Prior to trading on Tuesday, the shares of Ford had decreased by approximately 4% so far this year and approximately 34% over the course of the previous year. As a result of the slowdown in the economy, earnings forecasts for the year 2023 have become less optimistic. It is anticipated by Wall Street that Ford will make an operating profit of approximately $9.3 billion in 2023, which is a decrease from the operating profit of $10.4 billion gained in 2022.
The S&P 500 has gained approximately 3% this year but has fallen roughly 11% over the past 12 months. The Dow Jones Industrial Average has experienced a decline of approximately 3% thus far in 2023 and approximately 7% over the course of the last 12 months.
The Urgent Need to Achieve Our Emissions Goals
In an effort to curb carbon footprints, governments all over the world are enacting increasingly harsh emission rules. So, in order to comply with these rules, the auto industry must implement environmentally responsible manufacturing techniques. The choice made by Ford to electrify its most iconic SUV is in line with these emission targets and will assist the company in meeting the requirements set forth by regulatory authorities.
Featured Image: Unsplash @ Kenny Eliason