Ford Scraps Electric SUV As It Adjusts To Lower Electric Vehicle Demand
Portfolio Pulse from Michael Juliano
Ford is canceling plans for a large electric SUV and expects a $1.9 billion write-down due to lower-than-expected EV demand. The company will focus more on hybrid models and delay a new electric pickup truck to 2027. Ford's EV business is projected to lose $5 billion in 2024. The news also affected ETFs tracking Ford's stock.
August 21, 2024 | 10:47 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Ford is canceling a large electric SUV and expects a $1.9 billion write-down due to lower EV demand. The company will focus on hybrid models and delay a new electric pickup truck to 2027. Ford's EV business is projected to lose $5 billion in 2024.
Ford's decision to cancel the electric SUV and delay other EV projects indicates a strategic shift due to lower demand, impacting its financial outlook negatively in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
General Motors delayed opening a factory for electric pickups and a Buick EV release, similar to Ford's adjustments due to lower EV demand.
GM's delay in EV projects reflects industry-wide challenges in EV demand, potentially impacting its stock negatively.
CONFIDENCE 85
IMPORTANCE 40
RELEVANCE 30
POSITIVE IMPACT
First Trust Nasdaq Transportation ETF rose 0.91% following Ford's announcement, reflecting investor sentiment towards transportation stocks.
FTXR's rise suggests positive investor sentiment towards transportation stocks, possibly due to Ford's strategic shift.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50