Ford Mustang Goes Electric as Reinvented Mach-E SUV to Challenge Tesla

Ford is unveiling its first all-electric SUV, marking the start of an avalanche of battery-powered vehicles coming from mainstream and luxury automakers during the next two years that industry analysts say will boost electric vehicle sales.

The “Mustang Mach E,” which will go 230 miles to more 300 miles per charge depending on how it’s equipped, was unveiled Sunday night ahead of the Los Angeles Auto Show press days.

There are 18 now for sale in the U.S., and IHS Markit expects that to grow to 80 in 2022, including pickup trucks and SUVs that are in the heart of the American market. Yet last year, pure electric vehicles made up only 1.5% of new vehicle sales worldwide, and the consulting firm LMC Automotive predicts that will rise to 2.2% this year. In the U.S., electric vehicles were only 1.2% of sales in 2018, and it’s expected to be about the same this year.

But automakers see opportunity for growth, and with electric vehicles getting 250 miles or more on a single charge, worries about running out of juice on a daily commute are gone. Because of the added models and increased range, LMC predicts that they will make up 17% of global sales and 7% of U.S. sales in 2030.

First-generation electric vehicles, which mainly were retrofitted versions of existing models designed to meet government fuel economy standards, didn’t sell well largely because they couldn’t travel more than 100 miles between charges. But now, many can go beyond the distance people drive in one day with plenty of cushion.

“Seeing 250 miles as a real thing has been kind of a game changer in the electric car market,” said Jake Fisher, director of auto testing for Consumer Reports. “There haven’t been a lot of choices for a vehicle that really could take the place of a mainstream vehicle. It’s a whole different animal now.”

Stephanie Brinley, principal auto analyst for IHS Markit, said electric vehicle choices may expand before consumer demand does, but eventually people will buy them.

“The increased number of models with an electric drivetrain will contribute to an increase in sales in the U.S.,” she said. “However, there is likely to be a period where the number of options will increase faster than demand and sales for each will be relatively low,” she said.

While many electrics coming in the next few years are from luxury brands, mainstream brands like Ford, Chevrolet and Toyota also have them on the production schedule. Brands that have announced new models that will go on sale in the next few years include Mercedes-Benz, Audi, Cadillac, Byton, Rivian, Bollinger, Kia, Faraday Future, Volkswagen, Mazda, Tesla, Aston Martin, Polestar, and Volvo, according to the Edmunds.com auto pricing site. Edmunds provides content to The Associated Press.

Ford and General Motors have announced plans for all-electric pickups that will compete against gas and diesel trucks that are the top sellers in the U.S.

For Ford, executives realized in 2017 that they had to offer something more exciting for the first of a new generation of electric vehicles. The company last year it promised six battery electric vehicles by 2022. It also has partnerships with VW and startup Rivian to build more.

To sell them, Ford decided to go to the company’s strengths: Pickup trucks, commercial vans and the high-performance Mustang.

Subscribe to our YouTube channel

TICTOC ON SOCIAL:

Follow TicToc on Twitter

Like TicToc on Facebook

Follow TicToc on Instagram

Subscribe to our newsletter

TicToc by Bloomberg is global news for the life you lead. We are a 24/7 news network that covers breaking news, politics, technology, business and entertainment stories from around the globe, supported by a network of Bloomberg’s 2,700 journalists across 120 countries.