Ford has begun production of its electric F-150 pickup truck at a new plant.
Ford plans to double the production capacity of its electric F-150 pickup to 150,000 vehicles per year by mid-2023, citing strong consumer demand.
The increase is a positive sign of demand for the F-150 Lightning as well as electric vehicles in general but also shows Ford underestimated demand for the truck, causing it to now scramble to increase it. The vehicle is due out in the spring, and Ford has said before that it will double production. The initial production was set at 40,000 units.
Kumar Galhotra, Ford president of the Americas and international markets, said Tuesday during CNBC's "Squawk Box" that the reception of the vehicle has been incredible.
Ford's shares were up 3% before the market opened.
Ford will start taking orders for the vehicle on Thursday. The company stopped taking pre-orders for the truck last month after getting 200,000 reservations.
Jim Farley, the CEO of Ford, told CNBC that the company was doubling production capacity for the F-150.
Farley told Jim Cramer that they had to stop reservations. We stopped at 200,000. Hard orders.
Ford said it will be implementing a wave-by- wave reservation process, with reservation holders being asked to watch for an invitation via email from Ford or to log into their Ford.com account over the next few months to place an order for their vehicle.
This week is the final pre-build phase before mass production of F-150 Lightning trucks for retail customers and F-150 Lightning Pro for commercial customers, Ford said.
General GM is scheduled to reveal an electric version of its Chevrolet Silverado on Thursday. The pickup is expected to compete directly with the F-150, which recently started shipping to consumers. The sale of the Silverado is expected to take place in 2023.
The F-150 Lightning has a wide range of prices. A work-oriented version of the truck will cost over $40,000. More consumer-focused models will start at over $50,000 and top out at over $90,000.
