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“Bad Deal for U.S. Industry” Ford Stock (NYSE:F) Gains as Ford Pans Trade Deal

Story Highlights

Ford comes out against the U.S. trade deal with Japan, and has a surprisingly good run with a new branded e-bike.

“Bad Deal for U.S. Industry” Ford Stock (NYSE:F) Gains as Ford Pans Trade Deal

President Trump’s recent move to set up a trade deal with Japan has generally gone well. I say “generally,” of course, because some ended up with better deals than others. Legacy automaker Ford (F) may have ended up with at least a shorter end of the stick here, as it has come out very much opposed to the deal. The opposition gave Ford a little extra credibility in the market, though, and investors sent shares up over 1.5% in Wednesday afternoon’s trading.

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The word came from the American Automotive Policy Council, which represents not only Ford, but also General Motors (GM) and Stellantis (STLA). The council was still reviewing all the particulars of the deal, but noted that “…any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.”

The council also came out in opposition to the trade deal brokered between the United States and Great Britain for much the same reasons. Further, automakers remain concerned about models coming out of Canada and Mexico, which still have substantial tariffs, as well as issues about Chinese graphite. Chinese graphite, a vital part of electric vehicle manufacture, may end up with a 93.5% tariff on it before too much longer.

The Ford Mustang…E-Bike?

Meanwhile, Ford also has an unexpected new model out, an electric bike. Ford actually sent one out to MotorTrend, who took a closer look at it. Ford offers two such bikes: the Mustang and the Bronco, which differ in the generally-expected way: the Bronco has much more of an “off-road” feel to it with a modified frame and spring combination.

While MotorTrend did have a few issues with the bike—like the unexpected lack of a kickstand and difficulty in adjusting the seat height—for the most part, Ford had brought out an electric bicycle that was surprisingly solid and delivered a quality experience. While most of us likely never would have expected that out of Ford, the idea that Ford could also handle e-bikes is a welcome surprise. One more tool in the toolbox, after all.

Is Ford Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After an 18.14% loss in its share price over the past year, the average F price target of $10.14 per share implies 10.86% downside risk.

See more F analyst ratings

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