2023-12-12 16:17:14 ET
Shares of Ford Motor Co (NYSE: F) ended about 1.0% up on Tuesday after the automaker said it now plans on producing only half as many all-electric F-150 Lightning pick-up trucks in 2024 as previously planned.
Cramer says Ford’s hybrid strategy is paying off
The multinational cited moderating consumer demand today and said it will now produce only 1,600 F-150 Lightnings per week in the coming year. Its previous target was 3,200 a week.
Scaling back on producing electric vehicles is the right move as it enables Ford Motor to go all-in on its hybrid strategy that is “really paying off”, says Jim Cramer.
The legacy car manufacturer should redirect its resources toward accelerating production of the new F-150 hybrid to capitalise on “tremendous demand”, he added.
Ford recently reported a whopping 75% year-on-year increase in its hybrid sales for November.
Focus on hybrid vehicles could boost Ford stock
Ford stock is currently down over 25% versus its year-to-date high.
But Cramer is convinced that focusing more on hybrid vehicles that are actually very profitable too will likely help with the stock price as well.
A lot of these companies are really tired of where their stocks are, including Jim Farley … they don’t want to make things that don’t sell.
Jim Farley – the Chief Executive of Ford Motor Co recently expressed plans of expanding the company’s range of hybrid vehicles, he told members of his investing club on Tuesday. Ford Blue – the division that includes hybrid vehicles earned $1.7 billion before interest and taxes in the third quarter.
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