No, really. Legacy automaker Ford (F) actually has a secret lab in Los Angeles, according to reports, and that lab is frantically working to build the future of automotive engineering as we know it. This revelation is a welcome one for Ford investors, who sent shares up over 1.5% in Thursday afternoon’s trading.
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Known as the “skunk works,” this secretive lab contains scientists from all walks of life, including former Ford employee turned Apple (AAPL) employee turned Ford employee once more Doug Field. Field and the coterie of engineers and designers therein got to work, trying to capture market share in the next generation before competitors could do it instead.
Amazingly, one of the key features of the skunk works is that only Field’s team is allowed inside it. No one else, not even high-end corporate personages, was allowed in the operation. This was deliberate, a move designed to protect the staff within from “corporate meddling.” And while electric cars have hit a series of speed bumps in the meantime—from a lack of government support to a lack of consumer interest—having some skin in that game is increasingly seen as vital. Thus, the skunk works labors on to develop new advances that might change some consumer minds.
Battery Deal Over
Remember the deal that Ford set up with SK On? The one that created BlueOval SK? That deal is now apparently dead, as the two have parted ways and will be splitting their factories between them. Reports note that Ford will get the two Kentucky sites while SK On will get the one in Tennessee.
SK On made the announcement, reports noted, and Ford acknowledged it, but had little more to say than the acknowledgment. Ford noted, “We are aware of SK’s disclosure and we have nothing further to share at this time.” This, sadly, means that any word on why the two parted ways will be minimal. However, SK did note that the split would allow it to “…supply batteries for both electric vehicles and energy storage systems not only to Ford but to a wider range of customers.”
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, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 29.07% rally in its share price over the past year, the average F price target of $12.73 per share implies 6.5% downside risk.
