Barron Al Root’s writer takes the Ford Mustang Mach-E for a twist.
Al Root
Text size
I’m seeing,
the company that initiated affordable personal transportation more than a century ago, has managed to drive 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 transport.
Barron’s he knows because I just spent the last few days zipping through Connecticut
Ford Motor‘s
(ticker: F) the new cross-shaped Mustang Mach-E. It barely resembles the Mustangs of yesteryear, but has an elegant style, both inside and out, plus a real pep. While some electric vehicles – hello,
Tesla
! – it can feel more like space capsules than cars, there is just enough tradition in this Mustang to make you feel at home. It could set a new standard for EV fun and ease.
Ford Mustang Mach E
Kindness Ford
Financial writers don’t usually review cars, but the car business is changing – significantly. Investors are convinced that electric vehicles are the future of personal transport. That’s why Telsa, from Elon Musk, is now the most valuable car company in the world, with a margin roughly equal to the value of two
Toyota Motors
(TM). To find out which companies, if any, can catch Tesla, we have to get behind the wheel – it’s not an unpleasant task. Barron’s, so far, he has driven a Tesla Model 3 with dual engines, a Polestar from Volvo and now a Mach-E.
The Mustang Mach-E is our favorite EV ride so far. The car is beautiful and fast – fast enough to generate butterflies. Our model went from zero to 60 in five seconds. The style and the nameplate drew the strings of our hearts. And with prices starting at about $ 44,000, Mach-E is within the reach of many Americans.
The version I drove, the Mach-E First Edition, is the closest to the Tesla dual-wheel drive Model Y. This car costs about $ 50,000, while the Mach-E First Edition costs about $ 60,000. But comparing models and features is at best an inaccurate science. Moreover, the first Mustang buyers will still qualify for a $ 7,500 federal tax credit. Tesla has sold too many electric vehicles to continue to qualify for such loans.
The Model Y has 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 the range is not everything in life. You have to look at the whole experience of the car.
The most surprising part of the test weekend was not driving, it was the reaction of fellow drivers and passers-by. Ford entered the turning test.
People were even impressed by the look and many wanted to drive it. Tesla vehicles, in our experience, no longer gather the same reaction. Of course, Tesla Models S, X and 3 did it once, but people got used to their angular, futuristic look. Ford, based on the size of our sample, managed to create some important news for Mach-E.
This is good for Ford and good for Ford investors. Recently, Ford has pledged to spend about $ 20 billion on electric and autonomous development from now until 2025. Adjusted for the size of Ford, it is about as much as any other traditional carmaker. Now, investors have early evidence that the money will be well spent.
Ford shares could already get a loan for Mach-E. Shares have increased by almost 31% so far. However, more than likely, the quarterly results were better than expected, which boosted stocks.
Wall Street, despite new products and better earnings, remains cautious about the stock. About 22% of analysts covering the company’s stock list shares. Average purchase ratio for shares in
Dow Jones Industrial Average
is about 57%.
Barron’s is more bullish than the average analyst, recently writes positively about Ford. I said that new management could improve margins and lead the company in what Wedbush analyst Dan Ives calls the golden age of electric vehicles. Since the publication of that article, the stock has increased by about 27%, better than the comparable 7% gain of
S&P 500.
Building quality electric vehicles at a price where traditional carmakers can make a profit and defend market share from all EV companies, such as Tesla, is essential for traditional carmaker stocks. Ford seems to have won early in that battle.
Barron’s has another idea for all electric vehicle manufacturers, including Ford and Tesla. Today, electric vehicles seem to have a huge iPad glued to the line. It’s a useful, futuristic interface, but it’s not really integrated or beautiful. A brave designer should do something about it.
Write to Al Root at [email protected]