Today was not a good day for legacy automaker Ford (F). The first and most obvious problem for Ford, was that it launched yet another recall effort, which ensures that this will be a record-breaking year for Ford recalls. But beyond that, reports emerged about “whiplash politics” hitting Ford hard. That combination of factors drove Ford shares down over 2.5% in Wednesday afternoon’s trading.
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First, the recall. Ford is recalling 32,160 more vehicles over issues of drive power. Basically, a half shaft is not engaging properly with the primary drive unit. In such a case, the vehicle can roll away if parked at an angle and without the parking brake engaged. Granted, if the vehicle is not parked on a sloped surface, the point is rather moot. But for anyone who does need to park on a slope, this can be a problem. This can also cause a loss of drive power while the vehicle is in motion, which will likely have an impact on fuel economy.
Reports note that the vehicles in question are mainly E-Transit vans, specifically those made in model years 2022 to 2025. Letters will be sent to those who possess the vehicle in question, who will receive more information with the letters. Final remedies are expected to follow in March, leaving E-Transit van drivers to carry on through the winter in their current vans.
“Whiplash Politics”
It is hard to deny that the Trump administration is a night-and-day difference from the Biden administration. Which side is night and which is day, of course, is left to the individual to decide. But the differences are crystal clear, and they also mean trouble for companies like Ford.
We know that Ford is planning to write down billions connected to its electric vehicle aspirations, which were taken on over several administrations, including the first Trump administration. But the sudden changes brought about by the second Trump administration prompted a complete sea change in the value of Ford’s own adjustments. But since Ford is not abandoning electric vehicles altogether, some believe that Ford is attempting to “…protect…itself against a future pro-environmentalist U.S. administration change.”
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 41.07% rally in its share price over the past year, the average F price target of $13.12 per share implies 1.46% downside risk.
