In 2008, a book called “Ford Model T: The Car That Put the World on Wheels” was published. It tells the story of how Henry Ford’s Model T, introduced in 1908, kickstarted the U.S. auto industry and America’s love for the open road. Despite its simple looks, the Model T became the most important car of the 20th century, affordable for average Americans from 1908 to 1927.
An interesting tidbit is how the Model T got its nickname, the “Tin Lizzie.” In 1922, a race was held in Pikes Peak, Colorado, where a Model T named “Old Liz” surprised everyone by winning. Despite its beat-up appearance, it beat even the fanciest cars. This victory earned it the name “Tin Lizzie.”
Today, Ford Motor (NYSE:F) is aiming to recreate that “Tin Lizzie” magic with its “Model e,” diving into the world of electric vehicles (EVs) after a slowdown in EV sales growth. But Ford isn’t going all-in on EVs just yet, still focusing on gas-powered trucks, 4x4s, and hybrids.
Despite this, Ford has made a splash in the EV market with the Mustang Mach-E, the country’s second most popular SUV-type EV. Plus, its commercial division, Ford Pro, is finding success in the EV space, especially with fleet-based vehicle operators.
Ford’s commercial unit, Ford Pro, is on track to become its most profitable division by 2024, as more businesses adopt EVs for their fleets. Despite not expecting to profit from commercial EVs until 2026, Ford is offsetting losses with software and service subscriptions, expecting them to make up 20% of Ford Pro’s profits by then.
The F-series trucks remain a cornerstone of Ford’s success, dominating U.S. vehicle sales for nearly 50 years. These trucks have seen a surge in demand and profit since the pandemic, with hybrid models expected to drive even more growth in 2024.
Overall, Ford stock presents an intriguing investment opportunity, with expectations of record profits and a bright outlook for the future, especially with the expansion into EVs and hybrids.
Featured Image: Megapixl
