Remember, a few weeks ago, when legacy automaker Ford’s (F) main aluminum supplier, Novelis, had a fire? How that fire would be sufficient to keep Novelis out of the picture for the rest of the year? Well, that may be about to go longer, as Novelis managed to have a second fire while still cleaning up and recovering from the last one. This hit Ford hard, and shares slumped nearly 3% in Thursday afternoon’s trading.
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The blaze brought multiple local fire departments out, and while all the employees were safely evacuated, the business itself took yet another hit. The fire started in Novelis’ cold mill, reports noted, and was apparently sufficient to throw clouds of black smoke that could be seen coming out of the plant’s roof.
Interestingly, Novelis did not mention what impact this latest fire would have on its plans to rebuild from the last fire. Ford, likewise, kept mum. However, Ford’s chief financial officer, Sherry House, mentioned that efforts to get Novelis back up and running were “on track.” Sufficiently on track, in fact, that the factory would be starting up around “…Thanksgiving and into early December.” Though with a completely different fire involved, that seems a lot less likely now.
Put the Tax Law Book Down
Meanwhile, over in the United Kingdom, Ford is frantically trying to get the British government to not shoot it in the foot on electric vehicles. Reports note that Chancellor Rachel Reeves is considering a new tax on electric vehicles, and right at a time when Ford is seeing demand for these plummet.
Thus, Ford’s managing director in the United Kingdom, Lisa Brankin, noted “It’s certainly not the right time to do it.” The idea is not necessarily a bad one—Treasury reps pointed out that fuel taxes currently cover gas and diesel, but not electric, so it is fairer to set up taxes on them as well—but it comes at a time when demand is on the decline. The last thing Ford needs is a shiny new tax bill on anyone who actually buys an electric car.
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, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.44% rally in its share price over the past year, the average F price target of $12.46 per share implies 0.08% downside risk.
