While the Ford Motor Co. (F) has been talking about electric vehicles for years, they have generally taken a back seat to the automaker's vast stable of vehicles powered by conventional internal combustion engines. That all changed last week, when Ford revealed the F-150 Lightning to the world. Per the company's May 19 press release:
"The truck of the future is here. The F-150 Lightning is the smartest, most innovative truck Ford has ever built. From near instant torque to intelligent towing, seamless connectivity to software updates, plus power for your home, a power frunk and a digital screen that's larger than any currently offered on a full-size truck – F-150 Lightning is a driving and ownership experience unlike any other."
Ford's enthusiastic announcement was met with widespread media coverage and fanfare. Indeed, the world's newest EV pickup truck has made quite a splash in the days since its official unveiling. Many analysts, investors and commentators have begun to opine on its potential impact on the EV market, as well as on the future of one of the world's most iconic automakers. If Ford's electric truck can garner anything like the following of its ICE forebear, it could prove revolutionary.
Electrifying a legend
The Ford F-Series is a true icon of the automotive industry. It was the best-selling vehicle in all of North America in 2020, a position it has enjoyed for 44 years in a row. The F-150 Lightning is clearly designed to tap into that legendary brand. Yet, while it shares the name and look of the storied F-150, will it share its appeal? That will remain an open question until the truck starts rolling out to customers next year, but there appears to be ample room for optimism. From a capabilities standpoint, the F-150 Lightning appears to be more than a match for its gas-burning ancestor, as TechCrunch's Kirsten Korosec observed on May 19:
"The vehicle specs suggest that Ford has delivered on the torque and power, while keeping the same cab and bed dimensions as its gas counterpart. That last detail is notable because by keeping the same dimensions, it is able to accommodate the thousands of F-150 truck accessories that exist today. If Ford has any hope of converting its current customer base, decisions like this one matter."
That Ford appears to have managed to deliver on the performance side of the F-150 Lightning is impressive. However, the most striking thing about the truck may be its price. Indeed, as John Neff of motor1.com pointed out on May 19, the F-150 Lightning may end up being one of the most affordable EVs on the market:
"The most shocking (pardon the pun) thing about the 2022 Ford F-150 Lightning electric truck's debut isn't the vehicle's range, charging speed, or the size of its massive frunk – it's the starting price. Our collective jaws dropped when Ford announced the F-150 Lightning would start at $39,974 before federal and state incentives are factored in. Not only will that make the F-150 Lightning one of the lowest cost electric pickups to go on sale in the near future, it'll be one of the cheapest electric vehicles of any kind and the most affordable full-size pickup you can buy (gas or electric) with incentives factored in."
The low starting price alone may galvanize some fence-sitters into taking a look at Ford's newest truck. The F-150 Lightning has clearly struck a chord with some buyers already. In just the first week following its public debut, Ford received a very healthy 70,000 pre-orders.
A charged-up EV strategy
Ford has been revving up its EV strategy over the past year. While announcing the company's 2020 sales and delivery results in February, Vice President Andrew Frick threw down the EV gauntlet in no uncertain terms:
"Fourth quarter represented an inflection point at Ford in our transition from cars to a much greater focus on iconic trucks, SUVs and electric vehicles to better serve our customers. We began to see our strongest evidence of this in December with retail sales up 5.3 percent with the launch of our new F-150, Bronco Sport and Mustang Mach-E. We are well positioned to see the benefits of our focused efforts throughout 2021."
In the months since, Ford has offered more and more details about its EV plans, which, perhaps unsurprisingly, revolve around the electrification of other iconic platforms. Mike Levine, the product communications manager of Ford North America, added further color on May 26:
"Yes, we will fully electrify Explorer as you might expect, given our plan to deliver 40% of our lineup as fully electric vehicles by 2030. We will continue playing to our strengths and electrify our icons in high-volume segments that we dominate today...Explorer is America's all-time, best-selling SUV. More than 8 million sold."
While many details of Ford's EV roadmap have yet to be revealed, the broad strategy has crystallized over the past week. On May 26, the company declared that EVs would represent 40% of its total global volume by 2030. To achieve that ambitious target, Ford intends to spend an eye-watering $30 billion through 2025 alone.
Ready to ride the lightning
Ford pulled out all the stops in its effort to make the F-150 Lightning palatable to its vast customer base. That is hardly surprising, since the platform's success could define a new and exciting era for the American automaker, while its failure could threaten its whole EV strategy.
Ford is betting the farm on EVs. While an aggressive transition to EVs will inevitably be an expensive gamble, Ford has played its cards well thus far, in my assessment.
Disclosure: No positions.
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