Ford Motor Company Shifts $20 Billion Focus to Hybrids Amid EV Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Strategic Shift: Ford Motor Company is reallocating nearly $20 billion from full-electric vehicles to more profitable hybrids and gasoline models in response to the slow development of the U.S. EV market, demonstrating its keen awareness of market dynamics.
- Cost Implications: This strategic pivot will incur approximately $19.5 billion in special charges for Ford in 2024, particularly with the discontinuation of the F-150 Lightning, which was seen as a cornerstone of its EV ambitions, highlighting significant decision-making missteps in the EV sector.
- Future Plans: Ford is redesigning its assembly line to pave the way for a new $30,000 midsize electric pickup expected to launch in 2027, aiming to reduce costs and enhance market competitiveness despite challenges with high-end EV sales.
- Financial Outlook: Ford's Model-e division reported losses exceeding $5 billion in 2024, yet the company anticipates that these strategic adjustments will lead to profitability by 2029, reflecting its confidence and adaptability in the evolving market landscape.
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: 13.710
Low
11.00
Averages
13.65
High
16.00
Current: 13.710
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.
