Ford Motor’s F much celebrated Mustang Mach-E SUV reached an important milestone as recently the automaker announced that it had produced its 150,000th order since the start of production in late 2020.
The all-electric Mustang Mach-E was globally launched in 2019 and became one of the several highly anticipated EV releases and ushered in a new generation of vehicles. Since then, it has become one of the best-selling EVs in the United States and globally.
A strong demand wave for the Mach-E has pitched Ford to the second best-selling EV brand behind the magnate Tesla. Ford sold more than 30,000 Mustang Mach-E vehicles year to date through October in the United States, ranking as the third best-selling EV behind Tesla’s Model Y and Model.
Encouragingly, almost all of the Ford Mustang Mach-E sales are being generated from customers who are replacing an internal combustion vehicle with an electric one in more than eight out of 10 cases in the United States and nine out of 10 in Europe.
As Ford celebrated the production milestone of the Mustang, it is focused on ramping up the production pace of the vehicle. Ford expects to see a spike in Mach-E production in Mexico by more than 10,000 units per month as the plant has been significantly upgraded. Presently, the Mach-E will be made available in 37 global markets, with more markets in focus for 2023. New Zealand, Brazil and Argentina have been chosen as the latest markets for the Mustang to be launched.
Ford has set out a goal of achieving an EV run rate of 600,000 units by 2023 and 2 million annually by 2026. Moreover, with announcements regarding a spate of battery sourcing initiatives targeting to launch an all-electric Explorer SUV by the end of 2024 and probable electric versions of the Bronco SUV and Maverick compact pickup, it is going the extra mile to bolster its position. Undoubtedly, the U.S. EV space in recent years became a hotbed of cutthroat competition as major automakers joined the race to carve out a niche for themselves. To be at the top rung of the EV ladder, Ford must sustain its competitive streak with a suite of new products and a ramped-up production.
Shares of F have lost 30% over a year compared with the industry’s 51.5% decline.
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Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked players in the auto space – CarParts.com PRTS, sporting a Zacks Rank #1 (Strong Buy), and Allison Transmission Holdings ALSN and Genuine Parts Company GPC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 0.6% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.2% downward in the past 30 days.
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