Ford's EV strategy shift has favorable read throughs for TSLA, RIVN, and LCID

Ford Motor (NYSE:F ) recent shift in its electric vehicle (EV) strategy has significant implications for the broader EV market, with positive read-throughs for Tesla (NASDAQ:TSLA ), Rivian Automotive (NASDAQ:RIVN ), and Lucid Group (NASDAQ:LCID ), according to a note from Stifel on Monday.

Ford announced a series of strategic adjustments, including cutting EV capital spending, realigning production, scrapping plans for a three-row electric SUV, and delaying its next-generation electric truck.

These moves are expected to reduce competition in the EV market and provide opportunities for other EV manufacturers.

Stifel highlights that Ford's decision to pull back on its EV ambitions could benefit Tesla in several ways.

"We believe the announcement from Ford is positive for TSLA's ability to generate incremental demand for its Automotive Regulatory Credits, negative for overall EV adoption sentiment although potentially positive for Tesla to maintain market share and the ability for Tesla's next-generation vehicle to garner more interest amid fewer options in the market," wrote analysts at Stifel.

For Rivian, Ford's abandonment of the three-row BEV SUV and the delay in launching its next electric truck are likely to reduce market competition.

Analysts at Stifel believe this could allow Rivian to gain traction with its own next-generation platform and strengthen its position in the market.

Additionally, these delays could positively impact Rivian's Automotive Regulatory Credit segment, as fewer alternatives from legacy automakers may drive more demand for credits.

Lucid also stands to benefit from Ford's strategy shift, particularly in the SUV segment.

"Ford's decision to scrap the three-row SUV likely leads to less competition for Lucid's Gravity SUV, as well as LCID's ability to gain traction for its mass-market mid-size sedan," say analysts at Stifel.

Source: Investing.com