Key points:
- Ford is on track as a first-mover to dominate the EV pickup space
- CEO announced plans to scale production from 40,000 to 150,000 F-150 Lightnings next year
- The company has secured lithium-ion batteries, eliminating supply chain fears
- The F-150 Lightning has been compared to Ford's Model T, the company's 1908 flagship product
Ford’s (NYSE: F) hotly anticipated F-150 Lightning has all the potential to dominate the EV pickup sector in the coming years. The vehicle has also received exceptional demand, pointing to an emerging trend that takes some of the spotlight of long-standing EV giant Tesla. If Ford can deliver on its promises, the high-growth gaze will likely be averted from early-stage startup’s to manufacturers with a solid existing moat.
Currently, Ford is on track to be the first automaker to bring a full-size electric pickup to the mainstream market; positioned with a first-mover advantage in a vehicle segment set for exponential growth in future years. The secret to the F-150 Lightning’s success is packaged neatly within one one word…scale. CEO Jim Farley announced today that the company plans on scaling production of the pickup to 150,000 units next year, much faster than its competitors; Rivian Automotive and GM.
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As I’m sure Elon Musk would be able to tell you now, being a first-mover in the EV market is invaluable to consistent growth and establishing a quickly expanding customer base. The company is already confident in hitting its new 150,000 target, with the lithium-ion batteries needed to hit the target already secured. This has been a key driver of EV sentiment lately, as investors and analysts grew worried regarding surmounting semiconductor and battery shortages. Navigating these supply chain issues would be a huge step in edging ahead of competition and outperforming the wider market as a whole.
Coupling ambitious scaling targets and a cheaper price tag than Rivian or GM, Ford isn’t looking back when it comes to the F-150 Lightning, and there's no reason they should be. Ford already builds around 1M F-150’s every year, hence the ability to share parts also hugely benefits a system of scale. CEO Jim Farley has attested the Lightning pickup as to when the Model T came out – Ford’s flagship product that acted as the major catalyst for vehicle adoption in 1908.
Looking at the F-150 from a potentially revolutionary angle, F shares have uncapped upside potential; should the first-mover advantage mean Ford is immediately able to dominate EV pickup market share. Scaling is critical for Ford, and the existing production capabilities of the existing F-150 will massively benefit ambitious targets.
