If anyone was expected prices at legacy automaker Ford (F) to stay stable for long, sadly, your hopes have been officially dashed. New reports say that Ford prices will be going up, on at least some models. Indeed, as projected earlier, it will be all about the tariffs that send prices up here. And Ford shares slid nearly 2% in Wednesday afternoon’s trading as a result.
Ford pulled guidance over tariffs yesterday, citing uncertainty about what impact these would have, as well as what the competition would be doing in response to their own tariff battles. A report from Reuters noted that Ford has hiked prices on three models: the Bronco Sport, the Maverick pickup, and the Mustang Mach-E electric SUV.
Dealers got word of the price hikes first, which will see prices go up as much as $2,000, depending on which model one considers. The price hikes will apparently only matter to vehicles made after May 2, which will not actually hit a dealer’s lot until late in June. Interestingly, these price hikes will come at about the usual time of year for price hikes at Ford, which tend to happen in the middle of every year. But Ford made it clear: it was not passing on the full cost of the tariffs to customers, instead taking some of the blow itself with modifications to the supply chain and the like. Ford has already demonstrated it is much more resistant to the tariffs than its competitors.
“Their Strengths Reveal to You Your Weaknesses”
A new report from CNBC, meanwhile, detailed Jim Farley’s recent fascination with Chinese electric vehicles. Last year, Farley was seen driving Chinese electric vehicles around. He even, at one point, referred to these as an “existential threat” to Ford itself. But as it turns out, the report noted, there is a reason for such measures.
The report noted that Farley spent six months driving that Xiaomi (XIACF) vehicle in a bid to see what it was doing, and what Ford could do in response. Farley has mentioned Ford’s competition frequently of late, and whether watching their sales or driving their cars, Farley is constantly moving to not only understand competitors, but by extension, how to address their advantages in the field as well.
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 two Sells assigned in the past three months, as indicated by the graphic below. After a 10.41% loss in its share price over the past year, the average F price target of $9.75 per share implies 4.36% downside risk.
