Insights

Why Ford Led Auto Stocks Higher Today

What happened

Ford (NYSE: F) stock popped Wednesday morning after the company reported its July 2022 vehicle sales numbers. The news brought other U.S. automaker stocks with it, too. After rising by as much as 6.5%, Ford shares were still 2.9% higher as of 11:16 a.m. ET. Rival General Motors (NYSE: GM) and electric vehicle (EV) start-up Lordstown Motors (NASDAQ: RIDE) also rode the news upward, gaining 3.6% and 5.4%, respectively. 

So what

Ford’s numbers surprised industry analysts, who had estimated that overall industry sales would drop by 10.5% year over year. Ford saw sales strength across its lineup, including a nearly 70% gain in SUV sales. While its EV sales were being compared to a low 2021 base, they nonetheless soared by 169%. That Ford segment, which currently includes its Mustang Mach-E, F-150 Lightning, and E-Transit van, grew at triple the rate of the overall EV industry in July, according to the company. The news bodes well for GM as well as EV start-ups like Lordstown. 

Now what

Ford also said sales of its hybrid F-150 and Maverick pickup trucks grew by 35.3% during the month. The company recently announced it would offer a new off-road package for its popular Maverick. The company hopes the entry-level pickup truck will help bring new customers to its brand. 

Both Ford and GM are beginning to ramp up production of their EV lineups. Ford sold more than 7,600 EVs during the month, and it’s now delivering its F-150 Lightning to all 50 states. At the same time, both Ford and GM are trying to grow the use of their respective self-driving technologies. Ford said it now has 66,500 paying customers for its BlueCruise hands-free driver-assist technology. General Motors, meanwhile, has plans to double the road network for its hands-free driver assistance technology.  

Ford and GM have both told investors their future prospects will rely on electric vehicle sales. Ford plans to use profits from its legacy internal combustion engine models to fund $50 billion in growth investments, most notably in its Ford Model e electric vehicle segment. Ford will break out the financial results of its EV, internal combustion, and commercial vehicle segments for investors beginning next year. 

GM has staked its future on EVs, as it has said it plans to exclusively sell electric vehicles by 2035. Similarly, Lordstown’s business depends solely on the success of its upcoming Endurance electric pickup truck. Wednesday’s report from Ford shows that electric vehicles’ popularity continues to grow, and investors think that’s a good sign for all related parties.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info