Written by Cláudio Afonso | LinkedIn | X
Ford’s decision of slowing down its transition to electric vehicles is already having its impact in its EV competitors in the U.S, Stifel higlighted in its latest research note, noting Lucid, Rivian and Tesla as the main manufacturers benefiting from the decision.
The Detroit automaker has announced last week that is stepping back in its investment efforts for electric vehicles from 40% to 30%.
In addition, Ford said it is cancelling the launch of a three row SUV that would compete directly with Lucid Gravity, which has the first deliveries expected for this year.
“Ford’s decision to scrap the three-row SUV likely leads to less competition for Lucid’s Gravity SUV, as well as Lucid’s ability to gain traction for its mass-market mid-size sedan,” says Stifel.
Lucid will deliver the first Gravity units by the year end becoming its second model after the luxurious sedan, the Air model. While the final starting price is still unknown, the model is expected to start at about $80,000.
Stifel sees also the strategy shift positive for the Irvine-based Rivian saying “Ford’s abandonment of the three-row BEV SUV and the delay in launching its next electric truck are likely to reduce market competition”.
Regarding Tesla, the firm sees also “increased demand” as the competition decreases despite marking it as negative for overal EV adoption and segment.
“We believe the announcement from Ford is positive for Tesla’s ability to generate incremental demand for its Automotive Regulatory Credits, negative for overall EV adoption sentiment although potentially positive for Tesla to maintain market share and the ability for Tesla’s next-generation vehicle to garner more interest amid fewer options in the market,” Stifel stated.
Written by Cláudio Afonso | LinkedIn | X
