Positive Development for Ford Shareholders

Positive Development for Ford Shareholders

Ford Motor Company (NYSE:F) Investors have been hit with a wave of worse news over the past year. Investors have had to contend with the wrath of the United Auto Workers union and rising costs associated with new contracts, the staggering $4.7 billion loss of its Model e electric vehicle (EV) unit and the stagnation of the share price.

However, recently Ford made a small announcement that many missed and that could help reduce range anxiety and boost not only VE sales but consumer satisfaction.

Range anxiety

Numerous studies have shown that the main barrier to mass adoption of electric vehicles is range anxiety. Range anxiety is simply the fear of being stranded during a trip without the ability to recharge the vehicle’s battery.

In fact, according to a PwC study, there is a huge need for additional public charging infrastructure in the US market. The analysis estimates that the United States will need to increase electric vehicle charging infrastructure tenfold to meet the demand for approximately 27 million electric vehicles on the road by the end of this decade.

There are several ways to combat range anxiety, and it’s true that vehicle range has increased over the past decade and will continue to improve. Another solution is to simply use larger batteries that provide additional range, although this comes at a higher cost for a vehicle that is already priced much higher than standard internal combustion engine vehicles.

That’s what makes Ford’s recent announcement more important than investors might think.

Positive Development for Ford Shareholders

Image source: Getty Images.

You get a free charger, and you get a free charger!

Ford, channeling its inner Oprah-gift mentality, said electric vehicle customers in North America will be able to reserve a free fast-charging adapter this spring that will give customers access to about 12,000 You’re here Superchargers.

While the partnership was announced in May, it was originally thought to cost consumers “hundreds of dollars,” until Ford recently announced that making the charging adapter free for its consumers was a way to improve customer satisfaction and reduce autonomy anxiety.

Why it’s a big deal

Currently, we are seeing slowing growth in electric vehicle sales in the US market, which has forced Ford to abandon billions in projects and infrastructure development, including reducing production levels of its very important F-150 Lightning.

The problem is that even though Ford lost $4.7 billion in its electric vehicle unit last year, the company needs to increase production to reduce overhead costs. One way to do this inexpensively is to reduce range anxiety with these free adapters, potentially attracting consumers who have been hesitant to purchase electric vehicles.

It’s just a little bit of good news for Ford investors who have been hit with bad news over the past year.

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Daniel Miller holds positions within Ford Motor Company. The Motley Fool Ranks and Recommends Tesla. The Motley Fool has a disclosure policy.

A little good news for Ford investors was originally published by The Motley Fool

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