Legacy automaker Ford (F) may have a winner with its new electric pickup, but that win may not last long. Reports suggest that Hyundai (HYMLF) may have a platform coming up that will take a lot of the wind out of Ford’s sails. Investors seemed concerned as well, and sent Ford shares down over 2% in Monday afternoon’s trading.
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Hyundai’s recently patented idea features batteries contained in a ladder frame. Essentially, this makes the battery pack a part of the vehicle’s entire structure, building it right into the frame rails. It not only provides for excellent energy density, but also allows the cells to be better protected during heavy use.
The result, those reports suggest, is an electric pickup that is better able to tow things and perform off-road, both of which are huge for Ford. Towing things and performing off-road are almost, but not quite, central tenets of Ford on par with “no boring cars.” Lighter unibody electric vehicles would be more likely to face complete structural failure if they started towing like that, but Hyundai’s idea will answer several shortcomings.
“Born in a Ford”
For everyone who celebrated Mother’s Day yesterday, I hope it went well. Ford actually brought out a bit of a new ad campaign itself around Mother’s Day, though more about what happens when a birth does not go exactly according to plan. The campaign is called “Born in a Ford,” and it focuses on those births that happen while the mother is trying to reach a hospital.
Whether in a private car or in the back of an ambulance—which are often Ford vehicles—mothers and first responders alike depend on Ford. So Ford opened up the floor, and let those mothers and first responders tell their stories accordingly. This allows Ford to maintain its name recognition and let customers make a subtle connection between first responders and reliability.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.78% rally in its share price over the past year, the average F price target of $13.69 per share implies 13.68% upside potential.
