Electric Vehicles

My No. 1 Electric Pickup Truck Play

As many of my long-term subscribers know, I’m a big fan of renewable energy and electric vehicles.

EVs are inherently more reliable than their internal combustion engine counterparts. So when it came time to replace my 13-year-old Nissan Motor Company (OTC: NSANY) Titan pickup, I started looking at the Ford Motor Company‘s (NYSE: F) electric F-150.

Ford is the undisputed leader in the American pickup truck market. Its iconic F-150 gas model is as American as apple pie. It’s been the bestselling truck in the U.S. for 44 years.

Over the past three years, Ford has sold roughly 900,000 F-150s annually. That works out to 1.7 trucks sold every minute, every day.

To put this in perspective, if the F-150 were its own company, it would be larger than McDonald’s (NYSE: MCD) and 3M Company (NYSE: MMM).

And even though the semiconductor chip shortage has hit the auto industry hard, Ford still sold 63,164 F-Series pickups in September.

That was Ford’s best truck sales month since the beginning of the shortage. And it saw a 13% increase over August’s sales.

And because the next generation of Ford’s F-150 is the company’s first all-electric pickup, it’s expected to sell well.

But what makes this company’s model stand out among the rest of the electric pickups?

Betting on Electrons Over Molecules

Changing the F-150 platform to all-electric was a big risk for the 118-year-old car company. But sometimes, a big risk can lead to a big reward.

So far, that seems to be panning out for Ford. It has more than 150,000 reservations for the F-150 Lightning.

And for good reason. The Lightning has a targeted torque of 775 pound-feet. That gets it from zero to 60 mph in a little more than four seconds. That smokes any other pickup truck.

Its extended-range battery will take it 300 miles or more. And if the power goes out at your house, the car battery can keep the lights – and everything else – on at home for up to three days.

So not only is it all-electric, but it can store electricity too. For people like me who are already planning to add battery storage at home, this sweetens the deal.

Now, you may be wondering what other competition there is among all-electric pickups.

The other big American truck makers are General Motors (NYSE: GM) and Stellantis N.V. (NYSE: STLA). They make Chevy and Ram pickup trucks, respectively.

They are working on EV pickup truck designs but haven’t announced models or production dates yet.

Tesla (Nasdaq: TSLA) is the only other EV maker to announce an electric pickup, the Tesla Cybertruck. But after Tesla satisfies its initial customers, I don’t believe the Cybertruck will capture any meaningful market share.

My No. 1 Pickup Play

If you’re looking for the next trending EV stock to invest in, Ford – with its new F-150 Lightning – is the one to watch.

Over the past year, Ford shares are up 108%. But they still trade for about only $15 per share. If the Lightning is a success, shares could easily double or triple from here.

And a strategic investment in Ford might just generate enough cash for you to buy a Lightning of your own one day.

Good investing,

Dave

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