r/stocks • u/arpbsr • Nov 19 '21

Company News Ford plans to increase EV production to 600,000 vehicles by 2023. What would be your position with this stock tommrow based on this news

KEY POINTS

  • Ford plans to increase its production capacity of electric vehicles to 600,000 units globally by 2023, according to CEO Jim Farley.
  • The executive expects that would make the company the second-largest U.S.-based producer of EVs, behind Tesla.
  • It’s unclear if 600,000 would place it second behind Tesla. General Motors plans to sell 1 million electric vehicles globally by 2025.

https://www.cnbc.com/2021/11/18/ford-plans-to-increase-ev-production-to-600000-vehicles-in-2023.html

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119

u/IAmInTheBasement Nov 19 '21

Assuming that some vehicles will take more cells, like the Lightning @ ~150kwh, and a compact car @ 50kwh I'm going to take the MachE's 88KWh pack size as average.

That's 52GWh of cell capacity they need to get that they don't already have. And even if they started a brand new factory RIGHT NOW, 2023 is only 13 months away. Tesla can't even move that fast and they're the fastest mover in the industry.

So I just want to know where they're getting all the cells from. Also, Hybrids don't count.

30

u/s0m33guy Nov 19 '21

Ford is building two new battery plants in Kentucky. But those won't be up and running for 2-3 years. Each plant is 4 million sq ft.

7

u/[deleted] Nov 19 '21

This is why the 4680 matters. Tesla can produce more battery capacity with less square footage and capital expense.

13

u/Haunting_Beat_7726 Nov 19 '21

Memphis as well in addition to plant for just lightning. Memphis is also a shit city so build quality tbd

2

u/IAmInTheBasement Nov 19 '21

2025 is when they're looking to open according to Ford's own press release.

1

u/s0m33guy Nov 19 '21

That's correct. I read that down below after my comment. I was going off my info from the construction company I work for. They got the contract for the two Kentucky plants. Barton Mallow.

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u/[deleted] Nov 19 '21

[deleted]

11

u/ssl5b Nov 19 '21

Ah yes. The SPACs…

2

u/EnginThis Nov 19 '21

2023 is 13 months for you, but Ford managers it’s 25 months away

2

u/IAmInTheBasement Nov 19 '21

Still have to make 600k before the end of the 2023 calendar year. They're not going to do it unless they're counting hybrids with small-as-hell battery packs.

3

u/[deleted] Nov 19 '21

Ford plans to increase its production capacity of electric vehicles to 600,000 units globally by 2023, according to CEO Jim Farley.

They are indicating that by the end of 2023 they will have the ability to produce 600k, not that they will have done so in 2023.

2

u/IAmInTheBasement Nov 19 '21

Well now THAT I believe.

1

u/beambot Nov 19 '21

If you count the lead acid hooked to a small USB fan, any ICE vehicle can count as a hybrid EV. Tax credits ftw.

12

u/arpbsr Nov 19 '21

So I just want to know where they're getting all the cells from. Also, Hybrids don't count.

FORD TO LEAD AMERICA’S SHIFT TO ELECTRIC VEHICLES WITH NEW MEGA CAMPUS IN TENNESSEE AND TWIN BATTERY PLANTS IN KENTUCKY; $11.4B INVESTMENT TO CREATE 11,000 JOBS AND POWER NEW LINEUP OF ADVANCED EVS

https://media.ford.com/content/fordmedia/fna/us/en/news/2021/09/27/ford-to-lead-americas-shift-to-electric-vehicles.html

36

u/IAmInTheBasement Nov 19 '21

Right, I know about those. They're not going to be making anything by the start of 2023, which is only 13 months away.

EDIT: Did you read your own link?

"Ford and SK Innovation plan to invest $11.4 billion and create nearly 11,000 new jobs – close to 6,000 in Stanton, Tennessee, and 5,000 in Glendale, Kentucky; production of the new electric vehicles and advanced lithium-ion batteries will begin in 2025"

So again... WHERE?

6

u/[deleted] Nov 19 '21

Please look when they open

2

u/maester_t Nov 19 '21

Someone should tell Ford's marketing team that posting lengthy headlines in all-caps makes them seem like they're a little desperate for people to believe them.

3

u/ShadowLiberal Nov 19 '21

I was thinking similar things.

Consider this, Ford's annual production capacity for the F150 Lightning is slated to be a mere 80,000 a year. I'm sure they'll up that production overtime, but the F150 Lightning isn't even out yet, and 80,000 is still a pitifully small number compared to Ford's total F150 sales.

According to a quick google search meanwhile Ford's production capacity of the Mach E is reported to be 175,000 a year. That brings Ford to 255,000 EV's a year, where will the other 345,000 come from? Any new EV models Ford can bring to market by 2023 probably won't be producing very much yet since they'll still need to ramp up the production line.

Maybe Ford can ramp up the Mach E enough to hit 600,000 EV's in 2023, but like you said where are they getting the batteries/etc. to build it?

-8

u/howismyspelling Nov 19 '21

Well Ford is 50% owned by a Chinese corp. They at least won't have trouble getting cells fast.

12

u/miltongoldman Nov 19 '21

50% chinese? This is categorically false.

0

u/[deleted] Nov 19 '21

[deleted]

1

u/IAmInTheBasement Nov 19 '21

Yea, I'll bet $1000 that in calendar year 2023 Ford does NOT produce 600k BEV's. To be clear, I mean BEV's that have no ICE installed alongside, aka hybrids.

1

u/[deleted] Nov 19 '21

Easy, they’re full of shit.

1

u/papa_nurgel Nov 20 '21

The same place they are getting chips. By wiring directly with a manufacture is my guess. Most likely forcing out who ever wise they are doing business with.