Legacy automaker Ford (F) is rapidly moving toward making more affordable cars, including some using its new electric vehicle framework. In fact, one of those vehicles just got a bit of a boost recently as the new electric pickup based on the new framework has just hit the prototype stage. That puts it on track for a 2027 release, at least so far. The news was welcome for Ford investors, who sent shares jumping up over 3% in Wednesday afternoon’s trading.
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Ford CEO Jim Farley noted that Ford’s efforts to make this pickup a reality are basically an “…internal Apollo style mission with little margin for error,” reports indicate. This is not just some concept car, either; Ford wants this concept car to hit production and deliver on the promise of an affordable electric vehicle, the likes of which are necessary to compete with the Chinese.
Reaching prototype stage, reports note, means that the car is sufficiently advanced that it can be seen in operation—how it drives, how it brakes, and so on—and modified accordingly. This also suggests that Ford has made several key decisions about suppliers, because these would have to be established in order to get the car to prototype stage. Thus, prototype stage is a vital milestone, and a clear sign the program is on track to come out, at least at some point.
Oh, Yeah, Another Recall
Then, in news that will leave almost no one surprised, Ford announced a recall. Ford is calling back around 119,000 vehicles, including Ford Focus models from 2016 to 2018, the 2019 Ford Explorer, and the 2024 Ford Explorer as well. Several other models are also on the list, and the problem this time is rather serious.
The issue here is the engine block heater, which has a defect in it that can—as you would think might be the case—cause fire in the engine block. The heater can crack due to the defect, which in turn means coolant leaks and potential short circuits. And the last thing anyone wants is loose sparks near that much gasoline. Dealers will replace the block heaters at no charge, and until then, owners of these vehicles should refrain from plugging in the heaters.
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, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 32.4% rally in its share price over the past year, the average F price target of $13.84 per share implies 0.87% upside potential.
