Bad news hit for legacy automaker Ford (F), as its electric vehicle division—already hit hard by market forces that largely repudiated its product line—lost a major part of its operation. Doug Field has decided to step down even as Ford itself is in the middle of a reorganization effort. Investors did not take the news well, and sent shares declining nearly 2% in Thursday afternoon’s trading.
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Field has been one of the biggest names in Ford’s electric “skunk works” project, a project designed to get Ford back in the electric vehicle game with a line of low-cost cars that do not need gasoline to run. Reports note that Field was not fired, but rather left voluntarily, and reasons why were short on the ground. Field, for his part, considered this “…an opportune time for me to pass the baton,” and that “…the product has reached a level of maturity.”
The work will continue, however, under Field’s immediate lieutenant Alan Clarke, reports note. The skunk works team will continue, and the $30,000 electric pickup is set to launch in 2027. Only time will tell how well it works, but it seems that Field got Ford at least most of the way there.
Praise the Lord, and Pass the Ammunition
History buffs know that World War II was largely won by the entrance of the United States into the fighting, serving as both a large-scale supplier and a source of manpower. This incredible turnaround was brought about by America’s industrial muscle, as private businesses stopped making consumer goods in some cases, and instead focused on armaments. Now, the United States is again calling on Ford to start making military hardware, like it did all those years ago.
The Trump administration is reportedly treating weapons production as “…a matter of national security,” and officials therein are calling on companies to identify “..barriers to taking on additional defense work.” This includes things like bidding process challenges as well as contracting requirements. Ford, for its part, declined to comment when asked about the ramp-up.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, eight Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 31.98% rally in its share price over the past year, the average F price target of $13.88 per share implies 11.3% upside potential.
