Ford Motor (NYSE: F) stock gained in early Monday trade following reports that the automaker plans to introduce a $30,000 EV expected to achieve profitability within approximately two and a half years.
According to the latest CNBC report, Ford Motor is gearing up to launch a new electric vehicle (EV) priced around $30,000, aiming for profitability within approximately two and a half years. While details on the specific vehicle remain undisclosed, this move underscores Ford’s strategy to expand its EV lineup into more affordable market segments.
In April, Ford CEO Jim Farley hinted at the automaker’s goal to achieve profitability in the $25,000 to $30,000 price range for electric vehicles.
The automaker is strategically shifting its focus to produce larger electric trucks and SUVs, alongside developing more affordable and compact EVs through a California-based “skunkworks” team.
However, Ford faced a setback last week when it issued a recall affecting over 552,000 model-year 2014 F-150 pickup trucks in the United States. The National Highway Traffic Safety Administration (NHTSA) identified an issue with the powertrain control module (PCM) that prompted the recall. The problem involves an intermittent loss of the transmission output shaft speed (OSS) sensor signal to the PCM, potentially causing an unintended downshift into first gear. This unintended downshift poses a potential safety risk, potentially leading to loss of vehicle control and increasing the likelihood of a crash.
Ford has pinpointed several causes of the intermittent OSS signal failure, including contamination, power short to ground, connector corrosion, connector pin swaging, and incorrect outputs from the OSS sensor.
The safety regulator urged affected vehicle owners to visit Ford or Lincoln dealerships for a free PCM calibration update. This update includes an OSS signal plausibility check to prevent unintended downshifts and activation of the malfunction indicator light in case of signal irregularities.
Ford Motor (NYSE: F) Stock Price Action
As of 09:30 a.m. (Eastern Time) Tuesday, F stock traded at $12.80, marking a 0.31% increase compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
