Ford's $5 Billion Bet on Next-Gen EV Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy F?
Source: CNBC
- Electrical Architecture Innovation: Ford's adoption of a 48-volt electrical architecture is expected to enhance production efficiency for its electric pickup by reducing parts by 20% and workstations by 40%, significantly lowering production costs and improving market competitiveness.
- Market Competition Strategy: Ford plans to launch a small electric pickup starting at $30,000 in 2027, aiming to compete against Tesla and rapidly expanding Chinese brands, thereby promoting broader EV adoption.
- Production Efficiency Improvement: The new electric pickup's wiring harness will be over 4,000 feet shorter and 22 pounds lighter than that of the first-generation electric SUV, and combined with new technologies, assembly time will be reduced by 15%, enhancing overall production efficiency.
- Future Development Vision: CEO Jim Farley describes this transformation as a
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy F?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.120
Low
11.00
Averages
13.65
High
16.00
Current: 14.120
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ford's Strategic Shift to New Electric Pickup Platform
- Electrification Challenges: Ford faced $19.5 billion in losses on its first-gen EVs, and despite demand falling short of expectations, the company is pivoting to develop a new universal electric vehicle platform, planning to launch a midsize electric pickup priced around $30,000, aiming for profitability from the outset.
- Manufacturing Efficiency Gains: The new platform reduces total parts by 20% and cuts 40% of process workstations on the factory floor, allowing Ford to lower production costs through streamlined manufacturing processes, thereby enhancing overall profitability.
- Battery Cost Control: Ford opts for lithium iron phosphate (LFP) batteries, which are cheaper and safer, as batteries account for over 40% of an EV's total cost; reducing battery costs is crucial for Ford to achieve profitability in its electric vehicle lineup.
- Market Risks and Opportunities: Although EV penetration in the U.S. is only 6%-8%, Ford remains optimistic about the midsize electric pickup's market potential, believing it meets consumer demand for affordability and utility, potentially filling a market gap and driving sales growth.
See More
Ford CEO Calls Universal EV Platform Key to Compete with China
- Competing with China: Ford CEO Jim Farley emphasized the Universal EV Platform as crucial for countering the rising dominance of Chinese automakers, labeling it as one of the most significant innovations in the company's history aimed at enhancing Ford's competitiveness in the global market.
- Battery Production Strategy: The upcoming electric pickup truck will feature LFP batteries produced at Michigan's Blue Oval Battery Park, showcasing Ford's commitment to in-house battery technology and enhancing the market appeal of its electric vehicle offerings.
- Partnership with BYD: Ford is reportedly exploring partnerships with BYD to procure batteries for its hybrid models, indicating a strategic pivot away from all-electric mobility, especially after scrapping the production of the F-150 Lightning EV pickup, highlighting a focus on diversified power solutions.
- Market Performance Insights: Benzinga Edge rankings indicate that Ford scores well on momentum, value, and quality metrics, with favorable price trends observed in the short, medium, and long term, reflecting market confidence in its future growth prospects.
See More
Waymo Launches Sixth-Generation Robotaxi Technology
- Technology Upgrade: Waymo recently launched its sixth-generation Waymo Driver technology, featuring a 17-megapixel imaging system that claims to be a generation ahead of other automotive cameras in dynamic range, low-light sensitivity, and resolution, enhancing safety and accuracy in autonomous driving.
- LiDAR Advantage: Utilizing LiDAR technology, Waymo's per-vehicle costs are estimated to be two to three times higher than Tesla's, yet its superior precision and safety in rapidly changing road conditions may position it as the dominant solution for passenger vehicles.
- Market Competition: Success in the robotaxi market for Waymo hinges not only on the number of vehicles deployed but also on the choice of autonomous driving technology, with LiDAR potentially providing a sustainable competitive edge that distinguishes Waymo from its competitors.
- Industry Support: Ford CEO Jim Farley expressed in 2025 that LiDAR is mission critical for Waymo, reflecting broad support from industry experts for LiDAR technology, which further solidifies Waymo's leadership position in the autonomous driving sector.
See More
Ford's Potential Shift to Eastern Innovation: A Misstep.
Ford's Potential Strategy: Ford Motor is reportedly considering assisting Chinese automakers in entering the American car market.
Concerns Raised: This strategy is viewed by some as potentially detrimental to Ford and the broader American automotive industry.
See More
Ford Unveils New EV Strategy: Cheaper Electric Vehicles
- Strategic Shift: Ford has pivoted to focus on a cheaper EV platform, abandoning its previous investments in larger electric vehicles, aiming to meet market demand for affordable EVs through simplified designs and cost reductions, thereby enhancing its competitive position.
- Battery Technology Innovation: The new platform will utilize cheaper and more durable lithium iron phosphate (LFP) batteries, which, while offering slightly reduced range, are expected to lower battery weight through lighter vehicle bodies and improved aerodynamics, enhancing overall efficiency.
- First Product Positioning: Ford plans to launch a mid-sized electric pickup as the first product from this new platform, with an expected price point around $30,000, targeting price-sensitive consumers and competing with other electric vehicle models in the market.
- Market Competition Analysis: The new electric pickup will compete with models like the Tesla Model 3, Chevrolet Bolt, and Nissan Leaf, while also facing challenges from emerging brand Slate, which plans to introduce a modular electric pickup, intensifying market competition.
See More
Automakers Focus on Electric Vehicle Affordability
- Critical Price Point: Multiple automakers have confirmed that the $35,000 to $50,000 price range is essential for mass-market EV adoption, with Rivian and Ford specifically targeting this segment in their strategic plans.
- Lack of Options: Despite years of EV development, industry executives acknowledge a surprising lack of compelling choices at accessible price points, making the options significantly fewer compared to internal combustion engine vehicles.
- Demand Fluctuations: While near-term consumer demand has softened, particularly following policy changes like the elimination of tax credits, automakers remain confident in the long-term potential for EV adoption, believing the market still holds promise.
- Cost Reduction Focus: All companies emphasize ongoing efforts to reduce battery costs, manufacturing expenses, and overall vehicle costs to achieve profitability at lower price points, ensuring competitiveness in the future market.
See More
Ford's Strategic Shift to New Electric Pickup Platform
- Electrification Challenges: Ford faced $19.5 billion in losses on its first-gen EVs, and despite demand falling short of expectations, the company is pivoting to develop a new universal electric vehicle platform, planning to launch a midsize electric pickup priced around $30,000, aiming for profitability from the outset.
- Manufacturing Efficiency Gains: The new platform reduces total parts by 20% and cuts 40% of process workstations on the factory floor, allowing Ford to lower production costs through streamlined manufacturing processes, thereby enhancing overall profitability.
- Battery Cost Control: Ford opts for lithium iron phosphate (LFP) batteries, which are cheaper and safer, as batteries account for over 40% of an EV's total cost; reducing battery costs is crucial for Ford to achieve profitability in its electric vehicle lineup.
- Market Risks and Opportunities: Although EV penetration in the U.S. is only 6%-8%, Ford remains optimistic about the midsize electric pickup's market potential, believing it meets consumer demand for affordability and utility, potentially filling a market gap and driving sales growth.
See More
Ford CEO Calls Universal EV Platform Key to Compete with China
- Competing with China: Ford CEO Jim Farley emphasized the Universal EV Platform as crucial for countering the rising dominance of Chinese automakers, labeling it as one of the most significant innovations in the company's history aimed at enhancing Ford's competitiveness in the global market.
- Battery Production Strategy: The upcoming electric pickup truck will feature LFP batteries produced at Michigan's Blue Oval Battery Park, showcasing Ford's commitment to in-house battery technology and enhancing the market appeal of its electric vehicle offerings.
- Partnership with BYD: Ford is reportedly exploring partnerships with BYD to procure batteries for its hybrid models, indicating a strategic pivot away from all-electric mobility, especially after scrapping the production of the F-150 Lightning EV pickup, highlighting a focus on diversified power solutions.
- Market Performance Insights: Benzinga Edge rankings indicate that Ford scores well on momentum, value, and quality metrics, with favorable price trends observed in the short, medium, and long term, reflecting market confidence in its future growth prospects.
See More
Waymo Launches Sixth-Generation Robotaxi Technology
- Technology Upgrade: Waymo recently launched its sixth-generation Waymo Driver technology, featuring a 17-megapixel imaging system that claims to be a generation ahead of other automotive cameras in dynamic range, low-light sensitivity, and resolution, enhancing safety and accuracy in autonomous driving.
- LiDAR Advantage: Utilizing LiDAR technology, Waymo's per-vehicle costs are estimated to be two to three times higher than Tesla's, yet its superior precision and safety in rapidly changing road conditions may position it as the dominant solution for passenger vehicles.
- Market Competition: Success in the robotaxi market for Waymo hinges not only on the number of vehicles deployed but also on the choice of autonomous driving technology, with LiDAR potentially providing a sustainable competitive edge that distinguishes Waymo from its competitors.
- Industry Support: Ford CEO Jim Farley expressed in 2025 that LiDAR is mission critical for Waymo, reflecting broad support from industry experts for LiDAR technology, which further solidifies Waymo's leadership position in the autonomous driving sector.
See More
Ford's Potential Shift to Eastern Innovation: A Misstep.
Ford's Potential Strategy: Ford Motor is reportedly considering assisting Chinese automakers in entering the American car market.
Concerns Raised: This strategy is viewed by some as potentially detrimental to Ford and the broader American automotive industry.
See More
Ford Unveils New EV Strategy: Cheaper Electric Vehicles
- Strategic Shift: Ford has pivoted to focus on a cheaper EV platform, abandoning its previous investments in larger electric vehicles, aiming to meet market demand for affordable EVs through simplified designs and cost reductions, thereby enhancing its competitive position.
- Battery Technology Innovation: The new platform will utilize cheaper and more durable lithium iron phosphate (LFP) batteries, which, while offering slightly reduced range, are expected to lower battery weight through lighter vehicle bodies and improved aerodynamics, enhancing overall efficiency.
- First Product Positioning: Ford plans to launch a mid-sized electric pickup as the first product from this new platform, with an expected price point around $30,000, targeting price-sensitive consumers and competing with other electric vehicle models in the market.
- Market Competition Analysis: The new electric pickup will compete with models like the Tesla Model 3, Chevrolet Bolt, and Nissan Leaf, while also facing challenges from emerging brand Slate, which plans to introduce a modular electric pickup, intensifying market competition.
See More
Automakers Focus on Electric Vehicle Affordability
- Critical Price Point: Multiple automakers have confirmed that the $35,000 to $50,000 price range is essential for mass-market EV adoption, with Rivian and Ford specifically targeting this segment in their strategic plans.
- Lack of Options: Despite years of EV development, industry executives acknowledge a surprising lack of compelling choices at accessible price points, making the options significantly fewer compared to internal combustion engine vehicles.
- Demand Fluctuations: While near-term consumer demand has softened, particularly following policy changes like the elimination of tax credits, automakers remain confident in the long-term potential for EV adoption, believing the market still holds promise.
- Cost Reduction Focus: All companies emphasize ongoing efforts to reduce battery costs, manufacturing expenses, and overall vehicle costs to achieve profitability at lower price points, ensuring competitiveness in the future market.
See More
