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
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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
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