Automaker Ford announced its new "universal electric vehicle platform" on Monday, which the company heralded as its "Model T moment," with plans to release a mid-sized EV pickup truck in 2027 with a starting price of $30,000. Ford stock angled 1.2% higher Monday prior to the announcement before falling lower.
Ford unveiled its new EV platform at an event in, Louisville, Kentucky on Monday at 10:20 a.m. ET. CEO Jim Farley said Monday that Ford has been working on the project for three years and that it "represents the most radical change in how we design and how we build vehicles at Ford since the Model T."
Farley added that the first vehicle on this new EV platform will be a mid-sized truck, built in Louisville, Kentucky, and that it will "reach customers in 2027."
The presentation did not offer a look at the new design, but it did provide some details. The vehicle will be "more spacious" than a Toyota Rav4, will have a frunk — a front trunk — as well as a "whole" pickup truck bed and will be faster than the Ford Mustang twin turbo, according to Farley.
The Ford CEO also said that the truck will be able to power a home for up to six days.
Farley added that the new EV platform will utilize lithium iron-phosphate, or LFP, battery cells. Farley said Ford "found a path" to produce LFP battery cells in the U.S. and does not have to import them.
As promised, Ford also performed a ground-up redesign to its assembly line process. The design divides the traditional manufacturing process into a three-limbed tree. Aimed at increasing efficiency and reducing stress and demands on line workers, the three branches of the tree meet at the main trunk of the line for final processes.
The automaker also said it is investing $2 billion into its Louisville assembly plant in addition to its previously announced $3 billion for a battery plant in Michigan. Ford stressed that that investments and the EV platform will keep around 4,000 jobs in the U.S.
Farley previously claimed Monday's announcement would be critical for the automaker, as he promised the company will focus on affordable, profitable mass-market EVs.
Farley Says There's Risk
"There are no guarantees with this project," Farley said Monday. "We're doing so many new things. I can't tell you with 100% certainty that this will all go just right. It is a bet. There is risk."
"The automotive industry has a graveyard littered with affordable vehicles that were launched in our country, with all good intentions, and they fizzled out with idle plants, laid off workers and red ink. And at Ford, three years ago, we sent out out to break that cycle," Farley said.
The unveiling follows Ford's July 30 report that its electric vehicle division lost $1.33 billion in Q2, even as its EV revenue soared to $2.4 billion. Reports also emerged late last week that while Ford is targeting new affordable EV releases, it has also delayed some new EV models to 2028.
On the Q2 conference call, Farley set sky-high expectations for the Monday unveiling by calling it "a Model T moment for us at Ford." The reference is to Henry Ford's creation of mass production for his company's 1908 Model T. That innovation reduced the price of a car by approximately 60%. It is widely cited as the birth of the modern automotive industry.
However, analysts remained doubtful.
"While we expect the company to put a 'brave face' on their EV strategy during a presentation on August 11th in Kentucky… investors remain skeptical for how Ford could operate a profitable EV business in a market where even Tesla's car business is unprofitable on an underlying basis (excluding credits and dealer margin) - and that's before Chinese EV tech migrates onto U.S. shores (slowly, at first)," Morgan Stanley's high-profile autos analyst Adam Jonas wrote on July 30.
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Shares of Ford advanced more than 1% during Monday's stock market before the announcement began. However, Ford stock fell edged down 0.13% to 11.16 at the stock market close.
Ford stock gained 4.6% to 11.32 last week.
The decision by Ford to announce its new affordable EV platform comes after the July 4 signing of the "Big Beautiful" budget into law by President Donald Trump. The Trump law means the U.S. electric vehicle market is readying to wrestle with the new reality without federal EV incentives.
Trump's legislation makes it so the $7,500 federal tax credit for electric vehicles will expire on Sept. 30 and also ends zero-emission vehicle credits, which funneled money to EV manufacturers from makers of gasoline vehicles. It also ditches fines for companies not meeting corporate average fuel economy standards.
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Analysts expect U.S. EV sales to spike in the third quarter as consumers take advantage of the EV tax credit. However, electric vehicle sales are then forecast to plummet in Q4 and 2026 is a big question mark for automakers.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Ford stock has a 62 Composite Rating out of a best-possible 99. The stock also has a 73 Relative Strength Rating and a 48 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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