Barron’s author Al Root takes the Ford Mustang Mach-E for a spin.
Al root
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Ford,
the company, which more than a century ago did pioneering work for affordable personal transportation, has made a home for executives and shareholders with its new electric offering. The company seems ready to make a real mark on the new, electrified era of personal transportation.
Barron’s know because we’ve only been to Connecticut for the past few days
Ford Motorsay
(ticker: F) new crossover-size Mustang Mach-E. It hardly looks like the Mustangs of old, but it has a sleek style inside and out, plus real pep. While some EVs – hello,
Tesla
! – 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 convenience.
Ford Mustang Mach E
Thanks to Ford
Financial writers usually do not judge cars, but the car business changes – significantly. Investors are convinced that EVs are the future of personal transportation. That’s why Elon Musk’s Telsa is now the world’s most valuable automotive company with a margin roughly equal to the value of two
Toyota Motors
(TM). Finding out which companies Tesla, if any, can catch is necessary to sit behind the wheel – not an unpleasant task. Barron’shas so far driven a Tesla Model 3 with dual cars, a Polestar from Volvo and now a Mach-E.
The Mustang Mach-E is by far our favorite EV ride. The car is beautiful and fast – fast enough to generate butterflies. Our model went from zero to 60 within five seconds. The styling and the nameplate draw on our heartstrings. And with prices starting at around $ 44,000, the Mach-E is within reach for many Americans.
The version we drove, the Mach-E First Edition, is the closest to Tesla’s dual car, four-wheel drive Model Y. The 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. In addition, early Mustang buyers still qualify for a $ 7,500 federal tax credit. Tesla has sold too many EVs to continue qualifying for such credits.
The Model Y does have a better range – an EPA list of 320 miles on a single charge, compared to 270 miles for the Mustang. In the cold Northeast, Ford battery management software said it had reached 240 miles. But scope 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 the ride, it was the reaction of fellow drivers and passers-by. Ford took the neck-twist test.
People were uniformly impressed by the look, and many wanted to drive it. In our experience, Tesla’s vehicles no longer get 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 our sample size, has managed to create an important role in the Mach-E.
This is good for Ford the company, and good for Ford investors. Ford recently committed to spend about $ 20 billion on electrical and autonomous development between now and 2025. Adapted to Ford’s size, it’s about as much as any other traditional automaker. Now investors have an early proof that the money will be well spent.
Ford’s stock may already be getting credit for the Mach-E. Shares have risen nearly 31% to date. More likely, however, it was better than expected quarterly results that boosted equities.
Wall Street, despite new products and better earnings, remains cautious with the stock. About 22% of the analysts who rate the company buy shares. The average buy rating ratio for shares in
Dow Jones Industrial Average
is about 57%.
Barron’s is more positive than the average analyst, and recently wrote positively about Ford. We said new management could improve margins and lead the company to what Dan Ives, an analyst at Wedbush, calls the golden age of EVs. Since the article appeared, the stock has risen by about 27%, better than the comparable profit of 7%
S&P 500.
Earning traditional car manufacturers at a price where traditional car manufacturers can make a profit and defend the market share of all EV companies like Tesla is of utmost importance to traditional car manufacturers. Ford looks to have won an early battle in the fight.
Barron’s has a different idea for all EV manufacturers, including Ford and Tesla. EVs today seem to have everyone glued a giant iPad to the dash. It’s a useful, futuristic interface, but it’s not really integrated or pretty. Some intrepid car designer needs to do something about it.
Write to All root at [email protected]