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Ford Versus Ferrari Versus Tesla: Ford Launches An All Electric Mustang SUV - Barron's

Ford reveals its first mass-market electric car, the Mustang Mach-E, which bears the name of the company’s iconic muscle car. Photograph by Mark Ralson/AFP via Getty Images

Ford Motor’s reservation site for its new Mustang Mach E is live. That’s the electric-vehicle version of Ford’s iconic sports car.

The launch is well timed. “Ford v Ferrari” dominated the U.S. theatrical box office this week taking in an estimated $31 million. The movie tells the story of the Ford (ticker: F) GT40 which won the 1966 24 hours of Le Mans race, defeating long time champion Ferrari (RACE).

Ford, it seems, is eager to start a new electric-vehicle (EV) competition with another high-end maker of luxury vehicles: Tesla (TSLA).

“Launching in late 2020, the all-electric Mustang Mach-E will be available in several variations, including a limited quantity First Edition,” reads the Ford news release. “A special GT Performance Edition will also be available starting in Spring 2021.” A $500 refundable deposit secures a spot in line. Ford didn’t immediately respond to a request for comment on reservation figures.

The Mach E has a 300-mile range on a single charge, rocket from 0 to 60 miles per hour in about 3.5 seconds, and charges in under 48 minutes, according to marketing materials. The Mach E is configured like a sport-utility vehicle, comparable with the Tesla Model X, which races from 0 to 60 miles per hour in about 4.4 seconds in its standard configuration, and about 2.7 seconds in its performance configuration.

It appears EV competition is heating up. Volkswagen (VOW.Germany) for instance, plans to have 70 new electric models by 2028. Of course, Tesla isn’t standing still. The U.S. EV maker plans to launch a smaller SUV—the Model Y—and is revealing its new pickup truck model in Los Angles on Thursday.

Ferrari doesn’t offer an all-electric model. But the stock hasn’t been hurt by the shift to EV sports cars (or by the 1966 loss to Ford). Ferrari stock is up more than 70% year to date giving the ultra-luxury goods maker a market value of just under $30 billion, not far behind Ford’s capitalization, of about $35 billion.

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What’s more, Ferrari doesn’t seem ready to jump into the all-electric race just yet.

“I would say that, certainly, in terms of hybrid, there’s been huge interest, especially since the launch of the SF90,” Ferrari CEO Louis Camilleri said on the company’s third-quarter earnings conference call earlier this month. “So in all fairness, I think a lot of our customers have difficulty imagining a real Ferrari, which is fully electric. But they had the same skepticism for hybrid. And when they sold the SF90, I think it blew them away. So I’m quite hopeful that we’ll be able to do the same with the fully electric car.”

Ferrari is doing just fine in its niche. And the prospect of more EV competition hasn’t phased Telsa investors, either. Tesla stock is on a tear, up about 63% over the past three months, far better than the 8.3% rise in the S&P 500 over the same span.

Tesla stock jumped after reporting better-than-expected third-quarter earnings. Shares are now up about 5% year to date. It’s an amazing rebound. Share were down most of the year as investors worried about cash flow and margins on the company’s new Model 3 sedans.

Write to Al Root at allen.root@dowjones.com

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Ford Versus Ferrari Versus Tesla: Ford Launches An All Electric Mustang SUV - Barron's
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