revealed more details about its compact pickup truck called the Maverick on Tuesday. It is electrified. And it’s cheap. Both things are surprising. Yet investors do not bid on stocks. They take a day to catch their breath.
stock (ticker: F) closed 1.6% at $ 15.62 on Tuesday. That
Dow Jones industrial average
ended fairly flat. So far, Ford stock has risen by about 78%. On Wednesday, Ford’s shares fell 0.8%.
A lot of the EV news is already priced in stock. Its previous gains are driven by past EV announcements and data points. Shares are e.g. Increased by approx. 25% since the company unveiled its all-electric F-150 in May.
Tuesday’s subdued reaction to a new electrified vehicle is not surprising for another reason. Investors already knew an announcement would come. Ford teased its new compact truck on June 3, saying it would release more details today.
On June 3, Ford called it “the vehicle you did not see coming.” Investors certainly did not expect a new product announcement last week. The stock ended up 7.2% that day.
Overall, the stock is approx. 73 cents higher or approx. 5% since Maverick was revealed.
Investors learned that the new truck is a hybrid electric and will start under $ 20,000. It’s impressive. Usually, electric motors and batteries add cost to cars, and a $ 20,000 truck is unusual these days. A Honda Ridgeline starts at around $ 36,000. A Chevy Canyon starts at around $ 26,000.
“The Maverick product proposal is like no other out there … with room for five adults, a standard full-hybrid engine with the city’s fuel economy that beats a Honda Civic,” Todd Eckert, marketing manager for the Ford truck group, said in the company’s press release. “We think it will be compelling to many people who have never considered a truck before.”
Analysts and investors will have to figure out the likely average transaction price – and what the profit margin on a $ 20,000 electrified vehicle could be.
Write to Al Root at email@example.com