In a move that proves that, sometimes, what you refuse to do matter almost as much as what you actually do, legacy automaker Ford (F) announced it was shutting down development on an “electronic brain” for cars that put many in mind of Tesla (TSLA) models. But that brain is out of the picture at Ford. The move at reasonably well with investors, who sent shares up modestly in Friday afternoon’s trading.
The program to develop what was called “next-generation electrical architecture” was a major priority for CEO Jim Farley and key deputy Doug Field, noted a report from Reuters. The system, known as FNV4, was actually cut due to soaring cost overruns and increasing delays to completion. Thus, Ford seemingly decided to cut bait instead of throw good money after bad.
Indeed, this comes as a particularly dark irony, as the FNV4 project was originally intended to cut costs at Ford, and even spark new revenue streams as it would allow for new features to be added. The program did not go without delivering some value, however; reports note that what was learned in the development of FNV4 will instead go into the current software system, and Ford will continue to develop and deliver an “advanced electrical architecture” going forward, the report noted.
An Out-of-Nowhere Fight
Ford’s aspirations to get out of the “boring car” market have led it down several different paths in recent months, including much harder into the racing circuits. And Ford is already starting to surprise some race fans, reports note, as it works to compete for an International Motor Sports Association (IMSA) title.
IMSA racing is a sports car racing circuit, which means that Ford is, of course, bringing in its Mustang, a breed of which just came off an impressive run at the Nurburgring test track. Reports note that the Mustang GT3 actually has a lead in the GTD PRO class right now, despite the fact that it only returned to GT3 racing in 2024. Despite the comparatively recent nature of its return, it is already tearing through competitors, and in the process, delivering some significant marketing wins as its car proves a winner in rapid fashion.
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 three Sells assigned in the past three months, as indicated by the graphic below. After a 10.87% loss in its share price over the past year, the average F price target of $9.47 per share implies 7.92% downside risk.
