Ford's F-150 Lightning Production Cut: Munster Says It 'Makes Sense' On Demand Slowdown, While Cramer Spots Hybrid Opportunity
Portfolio Pulse from Shanthi Rexaline
Ford Motor Co. (NYSE:F) is reportedly reducing production of its F-150 Lightning electric pickup truck by about 50% for 2024 due to a demand slowdown. Gene Munster of Deepwater Asset Management attributes the cut to slowing EV demand, exacerbated by higher interest rates and underwhelming offerings compared to Tesla. Jim Cramer sees the move as a strategic shift towards more profitable hybrids, defending Ford's decision. Ford's stock saw a slight increase in premarket trading.
December 12, 2023 | 11:54 am
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Ford is cutting its F-150 Lightning production due to decreased demand, which may reflect a cautious approach to market changes and a focus on profitability. The stock saw a minor premarket increase.
The production cut indicates a response to market demand and a potential shift in strategy, which could be seen as a positive by investors looking for prudent management. However, it also suggests a less optimistic outlook for Ford's EV segment, which could temper investor enthusiasm. The slight premarket stock increase suggests a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100