It was just six days ago when we heard that legacy automaker Ford Motor Co. (F) was set to lose its competitive edge to Chinese automaker BYD (BYDDF). BYD was about to outproduce Ford. Now, a new report has emerged saying that Ford might be about to lose that ranking within six weeks.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Ford is currently the sixth largest automaker in the world. But with BYD on track to produce, and sell, growing numbers of automobiles, it may be able to surpass Ford’s numbers and take that sixth-place slot. This would make Ford the first Big Three legacy automaker to lose its ranking to a Chinese competitor.
With BYD avidly contemplating a global expansion—particularly into Europe and South America—the idea that BYD could pick up its pace seems likely. And Ford, which has already shelved its electric vehicle plans for the foreseeable future, may have a tough time responding.
Cheaper EVs
Speaking of green automotive aspirations, there is good news on that front as Ford is planning some impressive deals for the end of the year. We’ve already heard about the free chargers, but both the Mustang Mach-E and the F-150 Lightning will both qualify for 0% financing, along with $3,000 in bonus cash and a $7,500 tax credit for leasing.
However, the Ford Ranger is considered one of the most dangerous kinds of pick-up trucks on the market. Apparently, there are more deaths that occur in connection with a Ford Ranger than with many other cars. The Ranger is one of the second most dangerous pick-up trucks, with a “…fatal accident rate of 4.0 cars per billion vehicle miles driven,” nearly double the national average.
Is Ford Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on five Buys, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.3% rally in its share price over the past year, the average F price target of $11.75 per share implies 4.44% upside potential.
