Jim Farley Celebrates 'Strong Start' As Ford's Overall Sales Surge In January: EV Sales Drop 11% Amid Mustang Mach-E Demand Dip
Portfolio Pulse from Anan Ashraf
Ford Motor Co (NYSE:F) reported an 11% drop in U.S. electric vehicle sales in January, primarily due to decreased demand for its Mustang Mach-E electric SUV, which saw a 51% sales decline. Despite this, Ford's overall vehicle sales increased by 4.3%, with significant gains in hybrids (42.7%) and combustion engine vehicles (2.6%). The Mach-E's reduced appeal is attributed to losing eligibility for a federal EV tax credit, unlike its competitor, Tesla's Model Y. Ford remains America's best-selling brand, with the F-Series as its top-selling truck.
February 03, 2024 | 3:54 am
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NEUTRAL IMPACT
Ford Motor Co experienced a decline in electric vehicle sales, particularly the Mustang Mach-E, but reported an overall sales increase of 4.3% in January. The company remains the best-selling brand in America.
While the drop in EV sales, especially the Mustang Mach-E, could be seen negatively, Ford's overall sales growth and status as America's best-selling brand mitigate the impact. The loss of the federal EV tax credit for the Mach-E is a concern, but the company's broad portfolio and strong performance in other vehicle categories help balance the short-term outlook.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100