More details about the Maverick compact pickup were revealed on Tuesday. It’s electric and cheap, both surprising. However, investors have yet to bid on shares. They took a day to breathe.
The stock (symbol: F) closed down 1.6% at $15.62 on Tuesday.
Dow Jones Industrial Average
ended smoothly So far, Ford shares are up about 78 percent on Wednesday. Ford shares are down 0.8 percent.
Lots of EV news is already priced in stock. Year-over-year gains have been driven by previous EV announcements and data points. For example, stocks have risen about 25% since the company launched its all-electric F-150 in May.
Tuesday’s muted reaction to the new electric vehicle wasn’t surprising for another reason. Investors already know that an announcement will be made. Ford teased a new compact truck on June 3 and said it would reveal more details today.
On June 3, Ford called it “The Car You Can’t See” Investors certainly didn’t expect last week’s new product announcement. Shares were up 7.2% that day.
Overall, the stock has been up about 73 cents, or about 5 percent, since the Maverick disclosure.
Investors learned that the new truck is a hybrid electric vehicle and will have an impressive starting price of less than $20,000. Usually, adding electric motors and batteries will add to the cost of the vehicle. And today’s $20,000 truck is normal. The Honda Ridgeline starts at about $36,000, the Chevy Canyon starts at around $26,000.
Todd Eckert, Ford Truck Group Marketing Manager, said: “The Maverick product offering is like no other… With room for five adults, the standard hybrid engine offers superior city fuel economy than the Honda Civic,” Ford Truck Group Marketing Manager Todd Eckert said in the company’s press release. It will be interesting for a lot of people who have never thought of trucks.”
Analysts and investors must figure out the probable average trading price. And what will the profit margins for a $20,000 electric car be?
Write to Al Root at email@example.com.