Can F-150 Save Ford?

Ford’s (NYSE: F) stock dropped almost 20% during one day after it announced poor earnings, plagued by staggering warranty payment costs. Despite double-digit growth in EV sales, they are still a tiny percent of Ford’s total, and it will take years, or longer, to recoup billions of dollars of investment into the sector. Ford relies heavily on a gas guzzler for a huge portion of its sales and revenue. The F-series-sized pick was 37% of Ford’s total vehicle sales in the US during the first half of 2024.

Ford bragged about the F-series when it released its first-half numbers: “Ford remains America’s No.1 truck seller, led by the best-selling F-Series and strong gains for Maverick, America’s most affordable pickup.” F-series pickup sales were 199,463. The EV version, the Lightning, had sales of a tiny 7,902.

The F-series does more than contribute to Ford’s revenue and profit. According to a 2020 Boston Consulting report, “In addition, F-Series manufacturing is responsible for approximately 500,000 US jobs. Each direct F-Series job supports an additional 13 to 14 American jobs, such as those found in dealerships and local communities around Ford and supplier facilities.”

Ford’s EV unit will lose about $5 billion this year. At one point, Ford management said its EV investment would grow to $30. Ford’s EV business may not make money for years. In the meantime, Ford needs something to carry the company on its back. This will be, for the next several years, a pickup that has been the best-selling vehicle in the US for over four decades.

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