Ford is announcing a hike in their Mach-E prices by 3K to 8.1K depending on the trim. THey will also hike shipping cost by $200. The news comes after the the inflation reduction act reinstated tax credits for plug in EV cars for some manufacturers.
The reality is that the price of EVs are in huge demand. Paying $5 a gallon for gas in the US - and more in other parts of the world - caught peoples attention. If in the market for an EV, you can't get one easily and if you do find one, you will likely by $5K to $10K above MSPR due to low supply and high demand.
Now the MSRP is going up too.
Looking at Ford's website, the base model is at $44,000. The premium model is $49,000. The GT is $61.995. I don't know if that is reflective of the increases, but one thing to note is that credits for EV cars is limited to $55,000. The GT is above that level and if the Premium price is within $6K of that number. Will they even quailfy anymore with price increases?
It seems that if there is a good thing whether it be price or environmentally friendly, it gets arbitraged away in an instant. As far as Inflation reduction? I don't see it.
Living in Arizona, the cost/benefit analysis for solar panels is similar. Each time I look at it, the cost and ROI stalls the decision.
PS Ford confirmed the layoff of 3000 employees earlier this week.
Maybe it is time to buy Ford stock?
Looking at the daily chart, the price moved to the 200 day MA at the highs earlier this month. That level comes in at $16.55. The current price is at $15.84. Getting above the 200 day MA would increase the bullish bias.
