‘s electric-vehicle production has run into a hiccup. Transitioning to an all-electric future isn’t easy.
The company has stopped producing its all-electric F-150 Lightning pickup truck because of a potential battery issue, Ford (ticker: F) said Tuesday.
New sent Ford stock down about 25 cents, or 2%, in Tuesday afternoon trading. Shares are down about 1.5% on the day. The
Dow Jones Industrial Average
are down 0.5% and 0.7%, respectively.
Ford hasn’t said when production could restart or exactly what the issue is, but company officials pointed to a battery issue. That could include the batteries purchased from suppliers, battery-pack construction, or even battery-management software common on all EVs.
Ford didn’t immediately respond to a request for comment about nature of the problem.
Ford delivered 61,638 EVs in 2022, including 15,680 F-150 Lightnings. The Lightning started shipping in significant volumes in June.
That number of EVs put Ford behind only
(TSLA) for EV sales in the U.S. this past year. The company plans more growth ahead. It wants to be producing EVs at a “run-rate” of about 600,000 a year by the end of 2023. That’s roughly 50,000 a month.
Ford delivered 7,823 EVs in December. If production ramps smoothly over the year, Ford could make almost 350,000 EVs in 2023. It will have to work out the battery issue, however, to make that happen.
Ford hopes to be have enough capacity in place to build 2 million EVs a year by 2026. Building them efficiently will be important to hitting profit margin goals. Ford wants to earn an 8% operating profit margin on its EVs by later this decade. Ford earned an operating profit margin of 6.5% in 2022.
(GM) recalled tens of thousands of its Chevy Bolt EVs in 2021 because of a battery defect tied back to a supplier. The supplier ended up paying the cost of that recall.
Write to Al Root at firstname.lastname@example.org