Ford’s (NYSE”F) F-150 is a major step forward that keeps the struggling firm in play around the truck market. While Tesla (NASDAQ:TSLA) is developing the Cybertruck, Nikola (NASDAQ:NKLA) enjoys a stratospheric market capitalization despite having no product on the market.
What should investors like about Ford’s F-150 Hybrid?
The F-150 will have a hands-free highway driving system, a decent screen, and will support over-the-air updates. Its use of data differentiates the firm from the much-hyped Tesla. For example, over-the-air updates will save Ford money as customers need not visit the service center.
And because the vehicles are connected to the cloud, it will transmit valuable data. Ford will use the data to detect problems before they become a bigger one. This will save customers and Ford lots of money. Warranty costs should fall.
If the launch runs smoothly, Ford will have valuable data about its customer and may serve them better. Todd Eckert said that “we want to understand features they prefer and which of them will aid, and in particular user experience that’s certainly how we go about looking at mix and looking about how we appropriately content our vehicles.”
Your Takeaway
The resale value of used pickup trucks is high because Ford models are of good quality. At many price points, consumers have lots to choose from. If most opt for the highest trim, expect F-150 revenues growing sharply faster.
Disclosure: the author owns Ford shares.