Why Ford Stock Is Popping
What happened
After taking a hit on Monday on reports that the global semiconductor shortage and other crimps in the supply chain are forcing it to idle two automotive plants in Germany, Ford Motor Company (NYSE: F) stock is bouncing right back here on Tuesday -- up 2.5% as of 12:30 p.m. ET.
That could be because of some good news the company also announced yesterday involving the U.S. Environmental Protection Agency (EPA).
Ford's Lightning electric pickup truck. Image source: Ford Motor Company.
So what
In a press release on its website, Ford confirmed on Monday the "final EPA-estimated range for all models" of its F-150 Lightning electric truck. According to Ford:
- The F-150 Lightning Pro SR (i.e., standard range) will drive 230 miles on a full charge -- right in line with Ford's original plan.
- The F-150 Lightning XLT SR and the F-150 Lightning Lariat SR will also have a 230-mile range.
- The F-150 Lightning Platinum model adds 70 miles of range -- 300 in all -- and is 20 miles ahead of Ford's own target.
- And three models -- the F-150 Lightning Pro ER (i.e., extended range), F-150 Lightning XLT ER, and F-150 Lightning Lariat ER -- will all go 320 miles, also 20 miles past Ford's original target.
Ford's chief program engineer for the F-150 Lightning program, Linda Zhang, pronounced herself "really happy" with these EPA-confirmed results and said that Ford is "laser focused on continually improving our energy consumption efficiency for Lightning."
Now what
Of particular importance to investors is the fact that nearly half of Ford's electric truck fleet -- those last three models -- now boast EPA-certified ranges that exceed the 314-mile range that the agency has confirmed for rival Rivian Automotive (NASDAQ: RIVN) and its vaunted R1T electric pickup truck.
At the risk of mixing metaphors, this confirms that we now have a real horse race in electric pickups. Ford is confirming that it's not just competitive with Rivian's offering but actually leading it by a nose.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
