ford motor company (F -0.17%) Investors have been bombarded with not-so-good news over the past year. Investors must contend with anger from the United Auto Workers union, rising costs associated with new contracts, a staggering $4.7 billion loss for the Model E electric vehicle (EV), and depressed stock prices. There wasn't.
But recently, Ford made a small announcement that many missed that could alleviate range anxiety and increase not only EV sales but also consumer satisfaction.
range anxiety
Many studies show that the biggest barrier to mass adoption of EVs is range anxiety. Range anxiety is simply the fear of being stranded during a trip without the option to charge your car battery.
In fact, PwC research shows there is a significant need for additional public charging infrastructure in the U.S. market. According to this analysis, the United States now needs to expand its EV charging infrastructure nearly tenfold to meet demand for an estimated 27 million EVs by the end of this decade.
While there are many ways to address range anxiety, it is true that vehicle range has increased over the past decade and will continue to improve. Another option is to simply use a larger battery, which increases range. However, a more expensive battery is required for a vehicle that already commands a much higher price point than a standard internal combustion engine vehicle.
That's why Ford's recent announcement is more important than investors realize.
Image source: Getty Images.
If you get a free charger, you get a free charger.
Ford, capitalizing on its internal Oprah-friendly thinking, said electric vehicle customers in North America will be able to reserve free fast-charging adapters this spring that will give them access to about 12,000 chargers. tesla Supercharger.
The partnership was announced in May and was initially thought to cost consumers “several hundred dollars,” but Ford recently announced that it would make charging adapters free to consumers based on customer satisfaction. The company announced that this is a way to improve the cruising range and alleviate concerns about cruising range.
why is it a big deal
We're currently seeing EV sales growth slow across the U.S. market, which is why Ford is undertaking billions of dollars in infrastructure development and We are forced to withdraw from the plan.
The problem is, while Ford lost a staggering $4.7 billion on its EV division last year, it needs to ramp up production to lower overhead costs. One way to do that cheaply is to use these free adapters to alleviate range anxiety and potentially attract consumers who have been on the fence about purchasing an EV.
This is some good news for Ford investors who haven't been exposed to much great news over the past year.
