Ford Motor revealed more details about its compact pickup truck dubbed Maverick on Tuesday. It’s electrified. And it’s cheap. Both things are surprising. Still, investors aren’t bidding up shares. They are taking a day to catch their breath.
Ford Motor stock (ticker: F) closed down 1.6%, at $15.62. The S&P 500 and Dow Jones Industrial Average were roughly flat. Year to date, Ford stock is up about 78%.
A lot of the EV news is priced in the stock already. Its year-to-date gains have been fueled by prior EV announcements and data points. Shares, for instance, are up about 25% since the company unveiled its all-electric F-150 in May.
Tuesday’s muted reaction to a new electrified vehicle isn’t surprising for another reason. Investors already knew an announcement was coming. Ford teased its new compact truck on June 3 and said then it would release more details today.
On June 3, Ford called it the “vehicle you didn’t see coming.” Investors certainly weren’t expecting a new product announcement last week. Shares finished up 7.2% that day.
Overall, the stock is about 73 cents higher, or roughly 5%, since the Maverick was revealed.
Today, investors learned the new truck is a hybrid electric and will start under $20,000. That’s impressive. Usually, adding electric motors and batteries adds cost to cars, and a $20,000 truck is unusual these days. A Honda Ridgeline starts at around $36,000. A Chevy Canyon starts at roughly $26,000.
“The Maverick product proposition is like nothing else out there…with room for five adults, a standard full-hybrid engine with city fuel economy that beats a Honda Civic,” said Todd Eckert, Ford truck group marketing manager, in the company’s news release. “We believe it will be compelling to a lot of people who never before considered a truck.”
Analysts and investors will have to figure out the likely average transaction price—and what the profit margin on a $20,000 electrified vehicle might be.
Write to Al Root at firstname.lastname@example.org