Ford in Talks with BYD for Battery Purchase to Support Hybrid Models
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Battery Procurement Talks: Ford is in discussions with BYD to procure batteries aimed at providing cost-effective solutions for its hybrid models, which is expected to lower production costs and enhance market competitiveness.
- Market Demand Shift: Amid declining demand for electric vehicles, Ford is adjusting its strategy by scaling back EV investments and pivoting towards more economical hybrid models to counter pressure from Chinese competitors.
- Technology Acquisition Opportunity: If the deal goes through, Ford will gain access to BYD's advanced battery technology, which will help improve the performance and efficiency of its hybrid models, thereby increasing consumer appeal.
- Financial Adjustment Impact: Ford announced a $19.5 billion writedown last December, indicating challenges in the EV market, and the strategic shift towards hybrid models is expected to help improve its financial situation.
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 12.46 USD with a low forecast of 10.00 USD and a high forecast of 15.00 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.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 13.840
Low
10.00
Averages
12.46
High
15.00
Current: 13.840
Low
10.00
Averages
12.46
High
15.00
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.
