Electric vehicle segment

These days, auto industry dynamics are changing at a very fast pace. To stay ahead of the competition, automakers (VCR) need to innovate and implement faster than their competitors.

Companies such as Tesla (TSLA) and Nissan have already demonstrated the potential of the electric vehicle segment. In December 2015, Ford (F) also announced its plan to make an additional investment in electric vehicle solutions. In this article, we’ll review this plan and find out what to expect from Ford’s electric vehicles in the coming years.

Can Ford Compete with Tesla in the Electric Vehicle Segment?

Ford’s electric vehicles

Currently, Ford’s electric vehicle segment presence is limited. The company produced its first full production electric vehicle, Ford Focus Electric, in late 2011. Initially, the electric car was only available for fleet customers in the United States. However, later in 2012, Ford started delivering it to retail customers as well.

According to the company, it has plans as to make additional investments to increase its electric vehicle presence in the coming years. These plans are as follows:

  • Ford plans to invest $4.5 billion in electric vehicle solutions by the year 2020. This will include the DC fast-charge capability. According to the company, it should deliver an 80% charge in an estimated 30 minutes and projected one-hundred-mile range.
  • The company also plans to expand its electric vehicle portfolio by adding 13 new electric vehicles by 2020.

Can Ford Compete with Tesla in the Electric Vehicle Segment?

This will be the company’s largest ever electrified vehicle investment within a five year period. At present, the company is taking orders for its 2016 Focus Electric with an MSRP (manufacturer’s suggested retail price) of $29,000.

The Focus Electric has a DC fast-charge capability as mentioned above. The production of this car is scheduled to begin toward the end of 2016. Overall, the success of the 2016 Focus Electric will be crucial in deciding the future of Ford’s electric vehicle segment.

Competition for Ford’s electric vehicles

Tesla (TSLA) has already registered its success in the electric vehicle segment with its Model S. The addition of the Model X sports utility vehicle to its portfolio should enhance its reach going forward.

Ford’s electric vehicle range seems to be targeting the masses via lower pricing. However, Tesla also has a plan to unveil its first mass-market electric vehicle, the Model 3, on March 31, 2016.

General Motors (GM) also plans to begin producing its electric vehicle, the Chevrolet Bolt, by the end of 2016. These two car models could pose competition to Ford’s electric vehicles, especially in the US market.

Meanwhile, Japanese auto giants Toyota (TM) and Honda (HMC) have also shifted their focuses to the electric vehicle segment. Going forward, it will be interesting to see how Ford differentiates its electric vehicle range from the competition. Continue to the next article to find out how the One Ford plan has benefited the company.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.