It was a brutal day for Ford’s electric vehicle (EV) sales. Two headlines stood out. Former Ford CEO Mark Fields, clearly bitter, made a strong point nevertheless. He told CNBC that people would not buy EVs because they are harder to charge than a gasoline-powered car when the driver fills his tank with gas. Other media pointed out that Ford’s EV sales fell 2.8% in the second quarter, compared to the same quarter a year ago.
Ford sold only 14,843 EVs in the second quarter. Part of the reason was a retooling of the plant that makes the Mach-E. Nevertheless, the fact that Ford did so poorly is remarkable. Its EV flagship F-150 Lighting sold 4,466. That was up 119%, but off such a minuscule base that the percentage means nothing. (These are every major automaker’s plans to go electric.)
The other end of the EV story is how well Ford’s gas-powered vehicles did. F-Series sales were an extraordinary 212,516, up 34%. It is the best-selling vehicle in America. Sales of the high-volume Escape rose 29% to 43,690. Sales of the Bronco Sport rose 13% to 33,272.
Ford is still the most powerful and successful gas-fueled brand in America.
Get Our Free Investment Newsletter
Investors need to wonder if Ford has a universal problem in the industry. If Fields is right, the sales of EVs will lag for years. Certainly, some research shows that Fields is correct.
Another factor in Ford’s poor EV sales is the dominance of Tesla. Once again, if Fields is right, Tesla’s large EV market share is the share of a modest market.
ALSO READ: The Least Reliable New Cars in America
Ford’s management is the best data spinner among all large U.S. public companies. Andrew Frick, vice president of sales distribution and trucks, said, “Our EV sales continue to grow. Improved Mustang Mach-E inventory flow began to hit at the end of Q2 following the retooling of our plant earlier this year, which helped Mustang Mach-E sales climb 110 percent in June.” Frick should become a politician.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Source: Read Full Article