Is Ford Trading EV Delays for Long-Term Gains in Affordable Models?

U.S. legacy automaker Ford F is pushing back two major electric vehicle (EV) launches as it shifts focus to smaller, cheaper EVs that can turn a profit.

The next-generation full-size electric pickup, known internally as “Project T3” and set to replace the F-150 Lightning, will now debut in 2028. That’s a few months later than the previous 2027 target — and far from its original plan to hit the market this year. The truck will be built at Ford’s BlueOval City plant in Tennessee, with prototypes still expected in 2027.

Ford’s next-generation E-Transit electric van has also been delayed from 2026 to 2028. Planned for production at the Ohio Assembly Plant, the van was first announced in 2022 with a mid-decade launch in mind.

These delays mark another adjustment to Ford’s EV strategy. Instead of pushing out large, high-priced EVs, the automaker is investing in a new platform for compact, affordable electric vehicles. The platform is expected to underpin several models, including a small pickup truck due in 2027. More details on this are expected to be announced tomorrow.

Ford’s CEO Jim Farley has pointed to Chinese automakers as the company’s main EV competitors, noting their ability to produce stylish, high-quality electric cars at inexpensive price points. To stay competitive, Ford is aiming to reduce costs with streamlined platforms and lower-cost batteries.

Ford’s current EV lineup — Mustang Mach-E, F-150 Lightning and E-Transit — remains in place, but the next-gen models will arrive later than planned. The bet now is that smaller, more affordable EVs will help the brand stay relevant and profitable in a competitive global market.

Whether this pivot works will depend on how fast Ford can bring its affordable EVs to market — and how well they stack up against the offerings from China and other competitors. The delays in its flagship EV truck and van could concern some customers, but they also give Ford breathing room to focus on profitability and cost leadership.

The Zacks Rundown on Ford

Shares of Ford have increased around 15% over the past year, underperforming the industry as well as its closest peer General Motors GM but outperforming the Italian American carmaker Stellantis STLA. While shares of General Motors have gained 24.6%, Stellantis stock has declined 38% over the same timeframe.

From a valuation standpoint, F trades at a forward price-to-earnings ratio of 0.28, below the industry average. It carries a Value Score of A. Meanwhile, General Motors and Stellantis trade at just 0.29X and 0.16X, respectively.

See how the Zacks Consensus Estimate for Ford’s earnings has been revised over the past 60 days.

F stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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