Barron’s writer, Al Root, takes a look at the Ford Mustang Mach-E.
Al Root
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Ford,
the company that pioneered affordable personal transportation more than a century ago, has reached a large number of drivers and shareholders with its new all-electric offering. The company seems ready to leave a real mark in the new electrified era of personal transportation.
De Barron he knows because we just spent the last few days zipping up Connecticut
Ford engine‘s
(ticker: F) new cross-sized Mach-E Mustang. It barely resembles the Mustangs of yesteryear, but has its own sleek style inside and out, plus a true style. While some electric vehicles, hello,
Tesla
! – It may look more like space capsules than cars, there is enough tradition in this Mustang to make you feel at home. It could set a new standard for the fun and ease of electric vehicles.
Ford Mustang Mach E
Courtesy of Ford
Financial copywriters don’t usually review cars, but the car business changes significantly. Investors are convinced that electric vehicles are the future of personal transportation. That’s why Elon Musk’s Telsa is now the most valuable car company in the world with a margin roughly equal to the value of two
Toyota Motors
(TM). Finding out which companies, if any, can catch Tesla requires getting behind the wheel, not a nasty task. De Barronso far he has driven a twin-engine Tesla Model 3, a Volvo Polestar and now a Mach-E.
The Mach-E Mustang is our favorite EV trip so far. The car is nice and fast, fast enough to generate butterflies. Our model went from zero to 60 in five seconds. The style and nameplate dragged the strings of our heart. And, with prices starting at $ 44,000, the Mach-E is within the reach of many Americans.
The version we drove, the Mach-E First Edition, is the closest to Tesla’s dual-engine, all-wheel drive Model Y. This car costs about $ 50,000, while the first Mach-E edition costs about $ 60,000. But comparing models and features is, at best, an inaccurate science. What’s more, early Mustang buyers will still be able to get a $ 7,500 federal tax credit. Tesla has sold too many electric vehicles to continue qualifying for credits like this.
The Model Y has a better range: a 320-mile EPA list with a single charge, compared to 270 miles for the Mustang. In the cold northeast, Ford’s battery management software said it had a range of 240 miles. But rank is not everything in life. You have to look at the whole car experience.
The most amazing part of the test weekend was not driving, it was the reaction of fellow pilots and pedestrians. Ford did the turn test.
People were evenly impressed by her appearance and many wanted to drive her. Tesla vehicles, in our experience, no longer accumulate the same reaction. Sure, the Tesla S, X and 3 models did it once, but people have gotten used to its angular and futuristic look. Ford, based on the size of our sample, has managed to create a very important buzz for Mach-E.
This is good for the Ford company and good for Ford investors. Ford recently pledged to spend about $ 20 billion on electric and autonomous development by 2025. Adjusted to Ford’s size, it’s roughly the same as any other traditional automaker. Now investors have some first proof that the money will be well spent.
Ford shares may already be getting some credit for the Mach-E. Shares have risen nearly 31% so far. But quarterly results are more likely to be better than expected to boost stocks.
Wall Street, despite new products and better earnings, remains cautious in the marketplace. Approximately 22% of analysts covering the company’s shares value the purchase. The average rating of purchase of shares in
Dow Jones industrial average
it is approximately 57%.
De Barron is more bullish than the average analyst, recently writing positively about Ford. We said a new direction could improve margins and drive the company toward what Wedbush analyst Dan Ives calls the golden age of electric vehicles. Since this article appeared, shares have risen around 27%, better than the comparable gain of 7% of the
S&P 500.
Building quality electric vehicles at a price where traditional car manufacturers can make a profit and defending market share from all electric vehicle companies like Tesla is critical to the stocks of traditional car manufacturers. Ford seems to have had an early victory in this battle.
De Barron has another idea for all electric vehicle manufacturers, including Ford and Tesla. Today’s vehicles all seem to have a giant iPad glued to the dashboard. It’s a useful, futuristic interface, but it’s not really integrated or pretty. Some intrepid car designers should do something about it.
Write to Al Root at [email protected]