In December, Ford Motor reported robust sales, with hybrid vehicles outperforming battery-electric vehicles (BEVs).
December Sales
Ford shipped approximately 192,000 vehicles in December, reflecting a 7% increase compared to the previous year. BEV sales reached around 10,000 units, marking a 30% year-over-year increase. Additionally, hybrid sales amounted to nearly 12,000 units, showing a substantial 60% jump.
Overall Performance in 2023
For the entire year, Ford shipped nearly 2 million vehicles in the U.S., reflecting a 7% increase compared to 2022. BEV sales reached approximately 73,000 units, experiencing a 17% growth. Hybrid sales amounted to almost 134,000 units in 2023, representing a 25% increase from 2022.
Ford Falls Behind General Motors in Electric Vehicle Market
Although Ford’s sales exhibited remarkable growth, General Motors managed to surpass them as the second-largest EV maker in the U.S., following Tesla. Ford had held the No. 2 position in 2022. General Motors shipped 75,585 BEVs in 2023. Tesla’s U.S. figures are not yet available, but their lead remains substantial, with an estimated sales volume of approximately 600,000 BEVs in 2023.
Ford’s BEV Sales Growth
Ford’s BEV sales performance showed progress in 2023. F-150 Lightning sales grew by approximately 50%, reaching over 24,000 units. All-electric trucks accounted for about 3.2% of F-series sales, up from approximately 2.4% in 2022. Mustang Mach-E sales experienced slower growth, totaling around 41,000 units, increasing by 3% year over year.
The Changing Landscape of BEV Sales in the U.S.
The current state of hybrid and battery electric vehicles (BEV) at Ford echoes what occurred in the broader U.S. automotive industry last year. While BEV sales remained steady, the rate of growth slowed down, resulting in an excess of BEV inventory for automakers.
In 2023, U.S. BEV sales experienced a growth rate of approximately 45%, reaching an impressive 1.1 million units. However, this growth pales in comparison to the 65% increase seen in 2022. By the end of the third quarter, BEV inventories had accumulated to over 110 days, while overall new car inventories in the U.S. accounted for approximately 70 days of sales.
Consequently, Ford Motor made the decision to temporarily halt certain EV-related expenditures and implement downtime in their EV production processes.
Following the release of these results on Thursday, Ford shares saw a modest increase of 0.5%, with each share valued at around $11.77. In comparison, the S&P 500 remained stagnant, while the Nasdaq Composite experienced a slight decline of 0.3%.
During early November, Ford stock hit a low point of just under $10 as the UAW labor negotiations neared conclusion. Fortunately, the agreement brought investors some relief and certainty. Currently, auto manufacturers and the UAW have a new contract in place that extends until April 2028. Since then, Ford shares have risen by approximately 20%.
As of now, Ford shares are being traded at around 6.6 times the estimated 2024 earnings per share, which is projected to be about $1.80.