It is no secret that legacy automaker Ford (F) has had a rough time producing cars that hold up in the long term. The sheer number of recalls in the last few months has driven that point home wonderfully. But the cars themselves are almost shockingly safe, as one Ford dealer recently demonstrated. And this demonstration gave investors a boost, sending shares up fractionally in Monday afternoon’s trading.
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The numbers are already pretty good. There are about 15,000 car accidents every day in the United States, reports note. But despite that, only about 39,345 people die annually. That number alone should make car travel feel a lot safer, but one dealer is taking great lengths to call attention to the safety of cars, especially Ford.
One dealer, who goes by “@thetruckcounselor” on TikTok, revealed that it provides loaner cars while cars are being serviced. Reasonable enough, really, except this dealership’s loaner car is a 2024 Ford Escape. That Escape currently looks like a modern art sculpture after it was hit by a dump truck while loaned to a customer. Yet despite that hit—which left the car in thoroughly undrivable condition, the customer walked away without injury. And a car that can survive a hit from a dump truck is not a car to take lightly.
Reconsidering Electrification
Meanwhile, even as Ford is pulling back on its electric vehicle operations, it is still trying to build them out as the future of the brand. It is, in fact, putting a lot of investment into developing electric vehicles despite the fact that these are not returning a lot of cash to the organization. At least, not yet.
Ford’s recent partnership with Renault (RNSDF) is proof that Ford is eager to get, and keep, skin in the electric vehicle game while still keeping up with its lucrative gasoline car segment. The loss of SK On is more of a blow, but demonstrates that Ford still has an interest in getting, and keeping, battery technology. That breakup was more a matter of how much could be produced versus how much could be used, reports suggested.
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, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 37.74% rally in its share price over the past year, the average F price target of $12.73 per share implies 6.98% downside risk.
