Ford Mustang Mach-E Grabs EV Share From Tesla

Ford (F) delivered record February EV sales in the first full month of sales for the Mustang Mach-E electric crossover, which took market share from Tesla (TSLA). Ford stock pulled back, trading around various buy points.


Year over year, new vehicle sales fell 14.1% to 163,520 last month, Ford said in a news release. That included declines of 3.6% for Ford trucks, 10.2% for SUVs and 65.2% for passenger cars, the last a market that the auto giant has all but exited.

Overall retail sales dipped 1.8%. Retail truck sales rose 10.2% and retail SUV sales gained 0.2%.

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Ford sold 3,739 Mustang Mach-E electric vehicles, a rival to Tesla’s Model Y. A hybrid F-150 truck also helped boost Ford’s EV and hybrid sales last month to 9,267 units, up 56% from a year ago and a record for February.

“Nearly 70% of Mach-E orders are from competitive brands, while just over one-fifth were sold in California,” Ford’s release said. California is both the largest U.S. market for EVs and Tesla’s home ground.

In a note March 2, Morgan Stanley analysts said the Ford Mustang Mach-E stole EV share from Tesla last month. “While U.S. EV sales rose 34% in February, Tesla’s share fell to 69% from 81% the prior year, they wrote. “The Ford Mustang Mach-E accounted for nearly 100% of the share loss,” they added.

Ford Stock Near Buy Points

Shares of Ford Motor lost 2% to 12.31 in Wednesday’s stock market. Ford stock briefly topped a 12.50 four-weeks-tight buy point intraday, according to MarketSmith charts analysis. However, that four weeks tight followed a short-lived breakout from what was then a three weeks tight and a 12.14 entry. Arguably that is a better buy point, along with 12.25, above the left-hand side of the short consolidation.

Tesla stock slipped 2.1%. China’s Nio (NIO) retreated 2.4%, continuing its post-earnings slide after warning that the chip shortage will hit EV production. Stellantis (STLA), formerly Fiat Chrysler, fell 2.6% amid earnings and General Motors (GM) gave up 1%.

On Wednesday, Ford also reported record February sales of its F-650 and F-750 commercial heavy trucks. Sales jumped 143% to 1,686 units.

Ford’s all-electric Transit commercial van goes on sale late this year. An all-electric F-150 pickup truck is due to arrive next year.

Overall U.S. auto sales reached an annual pace of 16 million vehicles in February, J.D. Power and LMC Automotive estimated. That was down from 16.8 million in January 2021 and down from 16.6 million in February 2020.

Last month, Ford said it will begin selling the Mustang Mach-E in Europe as it invests $1 billion in a factory for electric vehicles on the continent. Ford also plans to make the Mach-E in China.

By 2030, Ford’s entire lineup of passenger vehicles in Europe will be all-electric vehicles. It’s investing $29 billion to develop electric vehicles and autonomous cars over the next five years.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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