Ford CEO Jim Farley on the popularity of the F-150 Lightning backup power

Ford CEO Jim Farley on the popularity of the F-150 Lightning backup power | Daily News Byte

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Ford CEO Jim Farley told Jim Cramer that the F-150 Lightning’s capabilities as a backup power source for homes and workplaces has been a real “eye-opener” for the automaker. Farley was responding to an inquiry from the Club after Jefferies downgraded generator mainstay Generac earlier this week on the thought that electric vehicles with these types of capabilities could disrupt the backup industry of electricity. Farley said he and Ford (F) thought this EV power perk was only for commercial customers but found that people wanted to have their own power plant. After Hurricane Ian, Ford saw a 200% increase in people powering their homes with their F-150 Lightning vehicles. Going forward, Ford plans to put the customer-favorite Pro Power Onboard feature on most of their EVs. “I believe you have a winner with Ford,” Jim said at Thursday’s “Morning Meeting” for Investing Club members. If you believe there won’t be a major economic downturn, this is a cheap stock at a 7.8x forward multiple, Jim said. He told the new Club members that the current levels would be a good place to buy a Ford. Bottom line We believe in Ford because we see the company’s push to invest and innovate in electric vehicles as a long-term growth vector for the company. It’s worth noting that Tesla ( TSLA ) doesn’t offer this backup power feature on its EVs. Lightning catapults Ford to No. 2 EV seller in the US, behind the Elon Musk automaker. Ford is struggling, down about 32% year-to-date compared to the S&P 500’s more than 14% decline. However, we’re sticking with Ford because the stock is cheap on a valuation basis. It also generates tons of cash, supporting an annual 4.25% dividend yield and share buybacks. (Jim Cramer’s Charitable Trust is long F. See the full list of stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stock in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade alert before executing the trade. THE INVESTING CLUB INFORMATION ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, INCLUDING OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY IS CREATED, OR CREATED, BY YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFITS ARE GUARANTEED.

Electric Ford F-150 Lightning

Andrew Evers / CNBC

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