Cramer reacts to Ford cutting production target for all-electric F-150 Lightning

Shares of Ford Motor Co (NYSE: F) ended about 1.0% up on Tuesday after the automaker said it now plans on producing only half as many all-electric F-150 Lightning pick-up trucks in 2024 as previously planned.

Cramer says Ford’s hybrid strategy is paying off

The multinational cited moderating consumer demand today and said it will now produce only 1,600 F-150 Lightnings per week in the coming year. Its previous target was 3,200 a week.

Scaling back on producing electric vehicles is the right move as it enables Ford Motor to go all-in on its hybrid strategy that is “really paying off”, says Jim Cramer.

The legacy car manufacturer should redirect its resources toward accelerating production of the new F-150 hybrid to capitalise on “tremendous demand”, he added.

Ford recently reported a whopping 75% year-on-year increase in its hybrid sales for November.

Focus on hybrid vehicles could boost Ford stock

Ford stock is currently down over 25% versus its year-to-date high.

But Cramer is convinced that focusing more on hybrid vehicles that are actually very profitable too will likely help with the stock price as well.

Jim Farley – the Chief Executive of Ford Motor Co recently expressed plans of expanding the company’s range of hybrid vehicles, he told members of his investing club on Tuesday. Ford Blue – the division that includes hybrid vehicles earned $1.7 billion before interest and taxes in the third quarter.