Auto giant Ford Motor Company (F) plans to halt the production of its F-150 Lightning electric pickup truck amid the slump in electric vehicle (EV) demand. The company said that it will pause the production of its F-150 Lightning from November 18 to January 6. This period includes the planned one-week holiday break in December.
A Ford spokesperson said that the company would continue to adjust its production levels to ensure “an optimal mix of sales growth and profitability.”
Ford Faces Pressures in EV Space
Ford and other EV makers are under pressure as slowing demand and price cuts due to intense competition are impacting their businesses. It is worth noting that earlier this year, the company said that it would cut production at its Michigan Rouge Electric Vehicle Center to one shift effective April 1. This decision followed the company’s October 2023 announcement that it was temporarily halting one of the three shifts at the Michigan plant that builds the electric F-150 Lightning.
Moreover, in August, the company said it was scrapping plans for an electric three-row sport-utility vehicle, blaming pricing pressure for battery-powered cars.
While the F-150 Lightning sales jumped 86% in the first three quarters of 2024, the company continues to incur losses on this model. Higher costs, price wars, and sluggish EV demand are hitting the bottom line of EV makers.
Earlier this week, Ford announced its Q3 results and reported a $1.22 billion loss for its Model e EV unit. The company adjusted its EBIT guidance to the low end of its previous outlook, reflecting notable losses in the EV unit and higher warranty expenses. The company cautioned that its Model e EV unit is expected to lose about $5 billion this year.
Is Ford a Good Stock to Buy Right Now?
Wall Street is cautiously optimistic on Ford stock, with a Moderate Buy consensus rating based on six Buys, nine Holds, and one Sell recommendation. The average F stock price target of $12.04 implies 17% upside potential. Shares have declined more than 15% year-to-date.
