Ford says its EV sales nearly tripled in September
- Ford reports a 16% year-on-year increase in quarterly sales.
- Its electric vehicles sales jumped nearly 200% in September.
- Ford shares are up 8.0% on the sales report this morning.
Ford Motor Company (NYSE: F) is up roughly 8.0% on Tuesday after the legacy automaker reported sales for its fiscal third quarter.
Supply constraints remain an issue for Ford
The multinational noted a 16% year-on-year increase in quarterly sales despite an 8.9% decline in September. Versus the prior quarter, vehicles sales were down 4.0%.
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According to the Detroit automaker, it sold 27% less F-Series pickup trucks last month. For the quarter, Edmunds had forecast a bigger 17.8% increase in sales.
That weakness was related to the ongoing supply constraints. Late in September, Ford did warn of an extra $1.0 billion in inflation-driven supplier costs this quarter that Invezz reported here. It said more than 40,000 vehicles could not be sent to dealers in Q3 due to parts shortage.
Nonetheless, Wall Street continues to recommend buying Ford shares. It sees upside to $16.12 on average.
Ford is quickly expanding in electric vehicles
Ford shares gained primarily on EV sales that nearly tripled (up 197.3% YoY) in September.
F-150 Lightning and E-Transit remained the best-selling electric pickup and electric van in the United States. In the press release, Andrew Frick (VP of Sales, Distribution & Trucks) said:
Ford continued to see high-demand vehicles turning at record rates in September, while developing electric truck and van leadership. Demand remains strong with new retail orders rapidly expanding.
Ford sold 4,691 electric vehicles in September, the majority of which were Mustang Mach-Es (up 47% YoY).
Ford shares are currently trading at a fraction of their previous five-year average price-to-earnings multiple.