US Auto Industry Reshapes EV Investments as GM Faces $1.6B Loss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: CNBC
- Market Demand Reevaluation: The U.S. EV market saw sales peak at 10.3% of new vehicle sales in September, but is projected to drop to 5.2% in Q4 following the end of federal incentives, indicating weaker-than-expected consumer demand that forces automakers to reassess their EV strategies.
- Significant Investment Losses: General Motors anticipates a $1.6 billion financial impact from its pullback in EV investments, highlighting that strategic adjustments in the EV sector will have direct negative consequences on the company's finances.
- Accelerated Strategic Shift: Ford has announced a pivot towards hybrid models, canceling plans for the next generation of large electric trucks, indicating that the company is adjusting its investment focus in response to evolving market trends and consumer demand.
- Uncertain Industry Outlook: While the long-term direction for electrification remains clear, automakers will continue to adjust their strategies in the near term, significantly expanding hybrid offerings to meet current market conditions and consumer preferences.
F
$13.4+Infinity%1D
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: 13.460
Low
10.00
Averages
12.46
High
15.00
Current: 13.460
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.
