So…remember about a week ago when we found out about a new flaw in the Mustang Mach-E line from legacy automaker Ford (F)? As it turns out, this proved to be a much bigger problem than anyone looked for, and could represent a hefty blow to Ford’s quarterly figures, especially when it comes to electric vehicle sales. Ford shareholders, though, took it in stride; Ford shares gained just over 1.5% in Thursday afternoon’s trading.
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The problem for the Mach-E line was a glitch in the battery system. Under the right conditions, reports noted, the battery problem would prevent the doors from being unlocked. And again, under the right conditions, that could result in a person being trapped inside the car and, potentially, killed. But Ford issued a halt to all demonstrations and deliveries in that time, and also rolled out a “stop sale” order.
That by itself might not be such a big deal, but reports say that the necessary software fix to make that particular flaw go away will not be available until the third quarter of 2025. Perhaps the only saving grace about this report is that the third quarter starts in about six days. Thus, if Ford can get that fix out in the early part of the third quarter as opposed to the later part, Ford will not lose all the sales from a major part of its electric vehicle lineup for long.
The Pikes Peak Problem
We also heard, a while back, about Ford’s plan to take on the Pikes Peak International Hill Climb, armed with a new, all-electric Super Mustang. Said Mustang was sufficiently potent to take on the task, packing 1,600 horsepower in its electric engines, but could not quite do the job thanks to one mitigating factor: wind.
The task was close, interestingly enough; Ford came in second overall, and a first rating in the Pikes Peak Open class. In fact, it was a lightweight gas-powered vehicle that took first, a Nova Proto NP01 Bardahl, reports noted. But with winds hitting 120 miles per hour above the treeline in Colorado on the day the event took place, the racers had to run a shortened course. Thus, the more lightweight Nova Proto won out over the powerful but heavier Super Mustang.
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, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 14.31% loss in its share price over the past year, the average F price target of $9.71 per share implies 8.61% downside risk.
