Ford US Sales Slip In November On Weakening Demand For EVs After Federal Tax Credit Expiry

• Internal combustion engine vehicle sales jumped 2.2% to 144,377 units.
• Ford’s best-selling F-series trucks saw a 10% drop in sales to 9,212 units.
• While overall truck sales stayed flat year-over-year, SUV category vehicle sales dropped 5% to 64,022 units.

Ford Motor Co’s (F) sales in the U.S. dropped nearly 1% in November to 164,925 units, following a steep drop in electric vehicle demand.

The company’s electric vehicle sales dropped 61% to 4,247 units after the expiry of federal tax credit on the purchase of electric vehicles to the end of September weighed on demand.

EV Sales

While the company’s Mustang Mach-E sales dived 49% to 3,014 units, sales of its EV truck F-150 Lightning dropped 72% to 1,006 units. Sales of the company’s electric E-transit van, meanwhile, fell 82% to just 227 units.

The dive is deeper than in October when the company reported a 24.8% drop in EV sales to 4,709 units.

Earlier this year, Ford’s rival General Motors announced that it is canceling production of E-transit’s competitor, Brightdrop electric van, in Canada, citing slow development in the commercial electric van market.

Growth In Hybrid, Gas Vehicles Partially Offset Weak EV Demand

Hybrid vehicle sales, however, jumped 14% to 16,301 units. Internal combustion engine vehicle sales also jumped 2.2% to 144,377 units, partially offsetting the drop in EV sales.

Ford’s best-selling F-series trucks saw a 10% drop in sales to 60,961 units, likely due to the disruptions caused by a fire incident at its New York supplier Novelis’ Oswego aluminum plant which impacted the production of its electric and Super Duty variants.

While overall truck sales stayed flat year-over-year, SUV category vehicle sales dropped 5% to 64,022 units, owing to a drop in demand for the company’s Lincoln brand SUVs Corsair and Nautilus and the Ford Escape, coupled with discontinuation of the Ford Edge product line.

How Did Stocktwits Users React?

F shares fell 1% at the time of writing. On Stocktwits, retail sentiment around Ford stock stayed within the ‘bullish’ territory over the past 24 hours while message volume remained at ‘low’ levels.

A Stocktwits user said that they dumped their entire position in anticipation of today’s selling.

Another opined that the stock has “potential to go down for a long time.”

F stock is up by 31% this year and by about 18% over the past 12 months. 

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