Ford Motor Company (F) has recently introduced two popular all-electric vehicles (EVs), and its stock price is experiencing a rally around the high demand. The company has been producing the Mustang Mach-E, an electric version of its iconic Mustang sports car. Ford has a new all-electric truck called the F-150 Lightning, based on its most popular truck model. The company’s stock has seen a strong one-year uptrend of 171%. I rate the company as bullish.
New Electric Models
Ford has entered the EV market with two new all-electric vehicles. The company says in its Q3-2021 presentation that the new models are driving growth and that the high demand for its EV models will continue to increase over the next few years. Like all EV makers, Ford has to account for the shortage of semiconductors for EV hardware.
The company has released its all-electric Mustang, the Mach-E, in America with great success and high demand. The company is currently releasing the vehicle in China. Expansion into the global EV market is one of Ford’s key priorities. The company has recently reassessed its global operations.
Ford is in the process of releasing its all-electric truck, the F-150 Lightning. The company recently announced that it would double production of the truck to 150K per year to meet the high demand of pre-orders. The company reports nearly 200K reservations. The vehicle is priced to sell on the American market at around $40K.
Ford’s Financial Performance
The company reported Q3-2021 revenue of $35.7 billion, which is down about 5% from the previous year’s same quarter. The company reported that wholesale unit sales were down 14% due to the shortage of semiconductors. Still, Ford earned $7.7 billion in adjusted free cash flow for the quarter.
The current revenue estimate for Q4 2021 is $36 billion. The company maintains a positive outlook for the 2022 Fiscal year.
Ford aims to increase its global presence in Europe and China. The global expansion will see new production plants in Cologne, new deals for EV vans in Turkey, and new investments in the UK for EV component production.
The company claims that its move into the global EV market will bring new growth and potential. In America, the company plans a joint investment of $11.4 billion in new EV auto plants and battery plants in Tennessee and Kentucky.
Ford’s Stock Price Performance
The company’s stock price performance has brought a lot of attention lately from investors. Ford has performed quite well compared to other EV stocks. The stock price has been on an uptrend since April 2020.
It is currently trading near its 52-week high. It has gained 165% over the last 12 months and 66% over the last six months. Large institutions own over 50% of its shares. Thus, market sentiment implies that the uptrend should continue.
Wall Street’s Take
Turning to Wall Street, Ford has a Moderate Buy rating based on 11 Buys, five Holds, and three Sell ratings assigned in the last three months. The average Ford Motor price target of $21.89 implies 9.7% downside potential.
Conclusion
Ford Motors brings new models to the EV market and is increasing its global presence in Europe and China. The company has a new all-electric Mach-E Mustang in production and an all-electric F-150 Lightning truck in pre-production.
Demand for both models is very high, according to Ford’s press releases. Its stock has seen an intense uptrend of 165% over the last 12 months. The demand for its new models should bode well for 2022 financial results and a continued stock uptrend. I think the company should appear on the radar of the Top Analysts’ Stocks, and I rate Ford as bullish.
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