Speed Freak

What’s going on?

Ford announced on Friday that it’s aiming to take electric vehicle (EV) production from zero to 600,000 in two years flat.

What does this mean?

The EV battle among veteran carmakers has been heating up lately, with the likes of General Motors and Volkswagen both selling over 200,000 EVs last year. Ford, meanwhile, has sold… none. Nada. Zilch. But it’s finally catching on: the company just said it’s aiming to double its original production target of 300,000 EVs by the end of 2023. And sure, that 600,000 is still a long way short of the 1 million that Tesla is expected to sell that same year. But try telling that to Ford’s CEO: he thinks Ford could eventually take the market leader’s top spot.

Why should I care?

For markets: Ford will trade you chips for batteries.

Ford’s share price hit a two-decade high this month, and there could be a couple of reasons why. For one thing, the company’s managing the global chip shortage better than other carmakers, and that looks set to continue given Ford’s new partnership with contract chipmaker GlobalFoundries. And for another, investors are excited about the carmaker’s big EV push. But there’s a problem: Ford might not actually be able to make or source all the EV batteries it needs. In fact, EV battery research firm Benchmark Mineral Intelligence reckons Ford will produce just 900,000 EVs a year by 2030 – well below what’s expected of other carmakers.

The bigger picture: Apple’s at it again.

Apple’s not about to let the carmakers have all the fun: the tech giant’s been fast-tracking the development of its own electric car, which will reportedly arrive as early as 2025. And even if it wants to slam the brakes on the whole project, it might struggle: Apple’s focusing on full self-driving capabilities, with the car rumored to have no steering wheel or pedals.

—

Originally Posted on November 19, 2021 – Speed Freak