Ford and Rivian Developments: Investment Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy F?
Source: Yahoo Finance
- Ford's Strategic Shift: Ford is pivoting from all-electric vehicles to lower-priced EVs and hybrids, planning to halt production of the all-electric F-150, which will incur a one-time charge of $19.5 billion; however, this move could better align with customer demand and enhance future profitability.
- Rivian's R2 Model: Rivian is introducing the R2, a lower-priced electric truck aimed at expanding sales to spread costs, with plans to launch in 2026, although mass production has yet to begin, leaving consumer demand as a critical unknown.
- Cautious Investor Sentiment: Currently, neither Ford nor Rivian stocks are seen as strong buys, with Ford trading near 52-week highs and Rivian's R2 launch results being pivotal; conservative investors may prefer to wait for clearer signals before investing.
- Uncertain Market Outlook: Despite both Ford and Rivian undergoing strategic adjustments, their stocks lack appeal in the current market environment, suggesting investors should keep them on their watchlist for more definitive market indicators.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy F?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.720
Low
11.00
Averages
13.65
High
16.00
Current: 13.720
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ford and Rivian Diverge on EV Strategies
- Ford Adjusts EV Strategy: Ford has decided to slow down its production of all-electric vehicles, shifting focus to lower-priced EVs and hybrids, which will incur a one-time charge of $19.5 billion; however, this move is expected to better align with customer demand and potentially lead to stronger profits in the future.
- Rivian Launches R2 Model: Rivian is introducing its lower-priced electric truck, the R2, aiming to spread costs across more vehicles to achieve sustainable profitability, although mass production has yet to begin, with a target launch in 2026 dependent on consumer demand.
- Market Performance Analysis: Ford's stock is currently near 52-week highs with a price-to-earnings ratio slightly above its five-year average, while Rivian's gross margin stands at -159.38%, indicating challenges in profitability, prompting investors to assess their positions carefully.
- Investor Strategy Recommendations: Currently, neither Ford nor Rivian stocks are seen as strong buys; investors are advised to monitor for a pullback in Ford's stock price and the sales results of Rivian's R2 before making investment decisions.
See More
Ford and Rivian Developments: Investment Outlook
- Ford's Strategic Shift: Ford is pivoting from all-electric vehicles to lower-priced EVs and hybrids, planning to halt production of the all-electric F-150, which will incur a one-time charge of $19.5 billion; however, this move could better align with customer demand and enhance future profitability.
- Rivian's R2 Model: Rivian is introducing the R2, a lower-priced electric truck aimed at expanding sales to spread costs, with plans to launch in 2026, although mass production has yet to begin, leaving consumer demand as a critical unknown.
- Cautious Investor Sentiment: Currently, neither Ford nor Rivian stocks are seen as strong buys, with Ford trading near 52-week highs and Rivian's R2 launch results being pivotal; conservative investors may prefer to wait for clearer signals before investing.
- Uncertain Market Outlook: Despite both Ford and Rivian undergoing strategic adjustments, their stocks lack appeal in the current market environment, suggesting investors should keep them on their watchlist for more definitive market indicators.
See More
Analysis of Investment Prospects in Ford Motor Company
- Industry Size: The U.S. automotive sector supports over 1 million manufacturing jobs, highlighting its economic significance; however, Ford's limited growth potential may impact long-term investor returns despite this scale.
- Weak Revenue Growth: Ford's automotive revenue from Q3 2015 to Q3 2025 is projected to grow at a compound annual rate of only 2.8%, indicating a mature industry with cyclical demand that leads to poor earnings growth prospects.
- Profitability Constraints: Ford has not demonstrated operating leverage, with high material and labor costs resulting in thin margins, and the company must continually invest in R&D and manufacturing capabilities to remain competitive, further squeezing profit margins.
- Dividend Appeal: While Ford's forward P/E ratio stands at 9.8 and its current dividend yield is 4.37%, attracting value investors, the safety of these dividends is questionable due to the company's exposure to macroeconomic factors affecting demand.
See More
Dow Reaches 50,000 as Concerns Over AI Diminish
- Market Performance: The week was challenging for markets, but it concluded with a surge of optimism among investors.
- Dow 50K Discussion: The article focuses on the potential for the Dow Jones Industrial Average to reach the 50,000 mark, highlighting the factors that could contribute to this milestone.
- Investor Sentiment: Despite recent difficulties, there is a renewed sense of hope and positive sentiment in the market, suggesting a possible recovery.
- Future Outlook: Analysts are considering the implications of reaching the Dow 50K and what it could mean for the broader economy and investment strategies.
See More
Next Week's Market Focus: Super Bowl and Earnings Reports
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
Stellantis Faces Major Write-Offs Amid EV Demand Decline
- Massive Write-Offs: Stellantis announced write-offs totaling €22.2 billion (approximately $26.5 billion) primarily due to lower-than-expected demand for electric vehicles, resulting in a 24.5% drop in stock price on Friday, indicating significant challenges in the company's EV strategy.
- Product Plan Adjustments: Of this amount, €14.7 billion relates to changes in product plans, including write-offs for underperforming models, costs for canceled future products, and payments to suppliers, which not only impact short-term financials but may also weaken long-term competitive positioning.
- Supply Chain Reductions: Stellantis is cutting €2.1 billion in planned investments for its EV supply chain, mainly in battery manufacturing, reflecting a cautious outlook on the future of the EV market and potentially diminishing its market share in this segment.
- Future Financial Outlook: The company now expects an adjusted operating loss of €1.2 billion to €1.5 billion for the second half of 2025 and has suspended dividend payments, indicating serious financial health challenges that investors should monitor closely in upcoming financial reports.
See More
Ford and Rivian Diverge on EV Strategies
- Ford Adjusts EV Strategy: Ford has decided to slow down its production of all-electric vehicles, shifting focus to lower-priced EVs and hybrids, which will incur a one-time charge of $19.5 billion; however, this move is expected to better align with customer demand and potentially lead to stronger profits in the future.
- Rivian Launches R2 Model: Rivian is introducing its lower-priced electric truck, the R2, aiming to spread costs across more vehicles to achieve sustainable profitability, although mass production has yet to begin, with a target launch in 2026 dependent on consumer demand.
- Market Performance Analysis: Ford's stock is currently near 52-week highs with a price-to-earnings ratio slightly above its five-year average, while Rivian's gross margin stands at -159.38%, indicating challenges in profitability, prompting investors to assess their positions carefully.
- Investor Strategy Recommendations: Currently, neither Ford nor Rivian stocks are seen as strong buys; investors are advised to monitor for a pullback in Ford's stock price and the sales results of Rivian's R2 before making investment decisions.
See More
Ford and Rivian Developments: Investment Outlook
- Ford's Strategic Shift: Ford is pivoting from all-electric vehicles to lower-priced EVs and hybrids, planning to halt production of the all-electric F-150, which will incur a one-time charge of $19.5 billion; however, this move could better align with customer demand and enhance future profitability.
- Rivian's R2 Model: Rivian is introducing the R2, a lower-priced electric truck aimed at expanding sales to spread costs, with plans to launch in 2026, although mass production has yet to begin, leaving consumer demand as a critical unknown.
- Cautious Investor Sentiment: Currently, neither Ford nor Rivian stocks are seen as strong buys, with Ford trading near 52-week highs and Rivian's R2 launch results being pivotal; conservative investors may prefer to wait for clearer signals before investing.
- Uncertain Market Outlook: Despite both Ford and Rivian undergoing strategic adjustments, their stocks lack appeal in the current market environment, suggesting investors should keep them on their watchlist for more definitive market indicators.
See More
Analysis of Investment Prospects in Ford Motor Company
- Industry Size: The U.S. automotive sector supports over 1 million manufacturing jobs, highlighting its economic significance; however, Ford's limited growth potential may impact long-term investor returns despite this scale.
- Weak Revenue Growth: Ford's automotive revenue from Q3 2015 to Q3 2025 is projected to grow at a compound annual rate of only 2.8%, indicating a mature industry with cyclical demand that leads to poor earnings growth prospects.
- Profitability Constraints: Ford has not demonstrated operating leverage, with high material and labor costs resulting in thin margins, and the company must continually invest in R&D and manufacturing capabilities to remain competitive, further squeezing profit margins.
- Dividend Appeal: While Ford's forward P/E ratio stands at 9.8 and its current dividend yield is 4.37%, attracting value investors, the safety of these dividends is questionable due to the company's exposure to macroeconomic factors affecting demand.
See More
Dow Reaches 50,000 as Concerns Over AI Diminish
- Market Performance: The week was challenging for markets, but it concluded with a surge of optimism among investors.
- Dow 50K Discussion: The article focuses on the potential for the Dow Jones Industrial Average to reach the 50,000 mark, highlighting the factors that could contribute to this milestone.
- Investor Sentiment: Despite recent difficulties, there is a renewed sense of hope and positive sentiment in the market, suggesting a possible recovery.
- Future Outlook: Analysts are considering the implications of reaching the Dow 50K and what it could mean for the broader economy and investment strategies.
See More
Next Week's Market Focus: Super Bowl and Earnings Reports
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
Stellantis Faces Major Write-Offs Amid EV Demand Decline
- Massive Write-Offs: Stellantis announced write-offs totaling €22.2 billion (approximately $26.5 billion) primarily due to lower-than-expected demand for electric vehicles, resulting in a 24.5% drop in stock price on Friday, indicating significant challenges in the company's EV strategy.
- Product Plan Adjustments: Of this amount, €14.7 billion relates to changes in product plans, including write-offs for underperforming models, costs for canceled future products, and payments to suppliers, which not only impact short-term financials but may also weaken long-term competitive positioning.
- Supply Chain Reductions: Stellantis is cutting €2.1 billion in planned investments for its EV supply chain, mainly in battery manufacturing, reflecting a cautious outlook on the future of the EV market and potentially diminishing its market share in this segment.
- Future Financial Outlook: The company now expects an adjusted operating loss of €1.2 billion to €1.5 billion for the second half of 2025 and has suspended dividend payments, indicating serious financial health challenges that investors should monitor closely in upcoming financial reports.
See More
