Ford Motor (F) - Get Free Report shares powered higher in heavy trading volume Tuesday following a report that suggested the carmaker is doubling production targets for its F-150 Lightning amid a surge in customer demand for the newly-unveiled electrified truck.
Reuters reported late Monday that Ford will target a 2024 production rate of 80,000 for the F-150 Lightning, up from a prior estimate of 40,000. Around 15,000 will be made next year, following the truck's formal launch in the spring, Reuters reported.
Earlier this year, Ford said it will up its investment in EVs to at least $30 billion by 2025, and will create a new division called "Ford Pro" that will focus on commercial vehicles and government customers. It also unveiled a commercial version of its popular all-electric F-150 Lightning truck, the F-150 Lightning Pro, with a base price of just under $40,000, a figure that pegs it largely in-line with Tesla's TSLA planned cybertruck, during a visit to a production facility in Dearbon, Michigan from President Joe Biden.
Ford shares were marked 2.1% higher in early trading Tuesday to change hands at $12.98 each, a move that would extend the stock's year-to-date gain to around 50%, more than double that of its larger rival General Motors (GM) - Get Free Report.
Ford is also seeing a boost from investors disappointed in the cost estimate pegged for GM's expanded recall of its Chevy Bolt, which the carmaker said over the weekend could reach $1 billion.
GM also posted weaker-than-expected second quarter earnings last month, compared to a surprise profit for Ford, as it cautioned it will "continue to see the impact this year" of the global shortage in semiconductors that has impacted rivals such as Tesla (TSLA) - Get Free Report, Toyota (TM) - Get Free Report and Volkswagen (VWAGY) - Get Free Report.
Last week Toyota, the world's biggest carmaker, said it would produce around 360,000 cars worldwide next month, a 40% reduction from its recent average, but pledged to hold its 2022 financial year target of 9.3 million.
World number two Volkswagen, meanwhile, cautioned on the same day that the "supply of chips in the third quarter to be very volatile and tight" and said it can't rule out a cut to its production schedule over the coming months.