Automaker Ford (F) has been seen walking back its aspirations in the electric vehicle (EV) sector lately. In fact, back in May, it turned some plans around, with Ford of Europe general manager Martin Sander noting it was “irrelevant” if internal combustion vehicles were phased out in 2030 or 2035. Still, it is an important segment that Ford is targeting, and it might have issues doing so, thanks to newfound competition. Investors, however, were not particularly worried, as shares were up over 3.5% in the closing minutes of Thursday’s trading.
EV aspirations have run into headwinds before. A rising number of Chinese competitors—who have done a solid job of producing a worthwhile EV, no less—have shown up in the space and are delivering quality products to the market. There are also potential political ramifications to consider, though reports note that Chinese EV makers are looking to step into Mexico to get around possible tariffs.
However, a new alliance of Japanese automakers is posing oddly familiar challenges to the EV market. Indeed, Nissan (JP:7201), Honda (HMC), and Mitsubishi (JP:8058) are teaming up to bring the next generation of electric vehicles to market, which will pose an even greater problem to Ford.
A Future in Bicycles?
But then Ford made an unexpected pivot and opened up a whole new line of vehicles, this time with two wheels – e-bikes. More specifically, these electric bicycles will draw design cues from the Bronco and the Mustang.
Ford is working with the N+ bicycle company to produce the new e-bikes, and models should start arriving by the end of the year. It is hoped that the new models will combine the thrill of driving a Bronco or Mustang with the ecological friendliness of an electric bicycle. Plus, it will offer a much lower price point that’s likely more accessible. Will it be a killer Christmas gift idea? Only time will tell, but it is not at all out of line.
Is Ford Stock a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on F stock based on six Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.21% loss in its share price over the past year, the average F price target of $13.91 per share implies 37.52% upside potential.
