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• Ford trimmed its production target for all-electric F-150 Lightning today.
• Jim Cramer says Ford Motor's hybrid strategy is paying off well.
• Ford stock is currently down more than 25% versus its year-to-date high.

Shares of Ford Motor Co (F) ended about 1.0% up on Tuesday after the automaker said it now plans on producing only half as many all-electric F-150 Lightning pick-up trucks in 2024 as previously planned.

Cramer says Ford’s hybrid strategy is paying off

The multinational cited moderating consumer demand today and said it will now produce only 1,600 F-150 Lightnings per week in the coming year. Its previous target was 3,200 a week.

NEWS: Ford earnings just came out.

The company's EV unit lost $1.3 billion in Q3, with a negative EBIT margin of -75.6%.

Ford says "many North America customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles, sharply compressing EV… pic.twitter.com/BDYd0sLoq3

— Sawyer Merritt (@SawyerMerritt) October 26, 2023

Scaling back on producing electric vehicles is the right move as it enables Ford Motor to go all-in on its hybrid strategy that is “really paying off”, says Jim Cramer.

The legacy car manufacturer should redirect its resources toward accelerating production of the new F-150 hybrid to capitalise on “tremendous demand”, he added.

Ford recently reported a whopping 75% year-on-year increase in its hybrid sales for November.

Focus on hybrid vehicles could boost Ford stock

Ford stock is currently down over 25% versus its year-to-date high.

But Cramer is convinced that focusing more on hybrid vehicles that are actually very profitable will likely help with the stock price as well.

A lot of these companies are really tired of where their stocks are, including Jim Farley … they don’t want to make things that don’t sell.

Jim Farley – the Chief Executive of Ford Motor Co. recently expressed plans to expand the company’s range of hybrid vehicles, he told members of his investing club on Tuesday. Ford Blue – the division that includes hybrid vehicles earned $1.7 billion before interest and taxes in the third quarter.  

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