Legacy automaker Ford (F) plans to get deeply back into electric vehicles again at some point, and to do that, it has been working on building infrastructure for these vehicles. One part of its plan, working with Contemporary Amperex Technology Co. Limited (CATL) (CTATF) on battery technology, has drawn some attention from lawmakers. That is not a position Ford shareholders want to be in, and Ford shares slipped fractionally in Wednesday afternoon’s trading.
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The attention comes mostly from John Moolenaar, who is chairman of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, as well as part of several subcommittees. Moolenaar noted in a letter to Ford, “Ford’s revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to accommodate the company’s new focus on energy storage systems and data center markets.”
While there are indeed certain concerns about Ford’s business practices, it may be worth noting that, yesterday, Moolenaar announced he would be seeking his seventh term in Congress. With his announcement, Moolenaar pointed out that he had done quite a bit in terms of energy security and health care access in Michigan as well. A high-profile dig at Ford, meanwhile, might help further.
Augmented Explorer EV
Ford’s electric vehicle systems got a bit of an upgrade as well, as reports noted the Explorer and Capri Standard Range EV models have landed new batteries and electric motors. The new models are set to feature a lithium-iron phosphate (LFP) battery, as well as new motors. All of these together will actually help lower the price tags on these models, reports note, thanks to production improvements.
Reports note that the combination of the new battery and the new motor will help improve driving range, offering an extra 43 miles, roughly, as well as better torque for more rapid acceleration. And, with the new batteries in place, users will be able to recharge their batteries to 100% charge more often without concern about battery degradation. That should help improve overall battery life, and thus, overall vehicle life.
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, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 36.43% rally in its share price over the past year, the average F price target of $13.87 per share implies 0.43% upside potential.
