Ford Motor Company (NYSE: $F) is a renowned American multinational automaker known for its iconic vehicles, innovative technologies, and rich automotive heritage. The company’s diverse lineup, from the popular F-150 pickup truck to the sleek Mustang sports car, caters to various consumer preferences, positioning it as a leader in the evolving automotive industry.
On April 4, 2024, Ford Motor Company announced significant updates to its EV strategy, including a shift in launch timelines, investment in advanced manufacturing, and expansion of its hybrid lineup. The company’s president and CEO, Jim Farley, highlighted Ford’s commitment to scaling a profitable EV business while meeting current market demands for gas, hybrid, and electric vehicles.
Three-Row EV Launch Delayed to 2027
Ford is transforming its Oakville Assembly Plant in Ontario into an EV manufacturing complex to support the production of next-generation electric vehicles. The transformation is set to begin in the second quarter, as planned. The company rescheduled its upcoming three-row electric vehicle launch at this facility from 2025 to 2027. This extended timeline will enable Ford to capitalize on advancing battery technology, delivering enhanced durability and greater customer value.
While the launch delay impacts the Oakville workforce, Ford assures its commitment to manufacturing in Canada. Collaborating with Unifor, the company aims to mitigate any adverse effects on its employees. Bev Goodman, Ford Canada CEO, emphasized the decision’s alignment with long-term profitability and growth for the company, its employees, and dealers.
Next-Gen Electric Truck Delayed to 2026
The company also announced a delay for the launch of its next-generation electric truck, with customer deliveries now slated to commence in 2026 rather than the previously targeted 2025. Ford said this gradual ramp-up in production will help assure quality as it brings this highly anticipated model to market.
The new electric truck will be built at Ford’s Tennessee Electric Vehicle Center, part of the automaker’s BlueOval City advanced manufacturing complex currently under construction. Ford is assembling a talented management team from various industry leaders to oversee the production of this highly anticipated electric truck.
Commercial EV and Battery Production Expansion
In addition to its consumer-focused EV plans, Ford is expanding its electric commercial vehicle offerings. The company is continuing its work to produce an all-new electric commercial vehicle for its Ford Pro customers, with production expected to begin at the Ohio Assembly Plant in Avon Lake, Ohio, by mid-decade.
Construction includes the erection of structural steel, pouring of interior slabs, and commencement of tool installation. Ford emphasizes using wearable technology by employees to ensure high-quality manufacturing processes.
Ford is also advancing the construction of its BlueOval Battery Park in Marshall, Michigan, and the BlueOval SK joint venture battery plants in Tennessee and Kentucky, which aligns with its commitment to enhancing its electric vehicle offerings.
Expanding Hybrid Lineup, Developing Affordable EV Platform
In parallel, Ford is also expanding its hybrid electric vehicle offerings, aiming to offer hybrid powertrains across its entire Ford Blue lineup in North America by the decade’s end. It recently partnered with Allego N.V. to establish rapid charging infrastructure at hundreds of Ford dealerships throughout Europe.
This collaboration aims to enhance charging accessibility and convenience for Ford electric vehicle owners, supporting the company’s vision of transitioning to a 100% electric lineup of passenger and commercial vehicles in Europe by 2035. With Allego’s ultra-fast charging stations offering up to 400 kW charging capability, Ford customers can expect a seamless charging experience customized to their needs.
Additionally, Ford has confirmed that a “skunkworks” team led by former Tesla engineer Alan Clarke is developing a “smaller, low-cost, profitable, flexible EV platform” capable of underpinning multiple high-volume vehicles. It suggests Ford is placing a greater emphasis on bringing more affordable electric options to market.
Ford’s Financial Outlook
Ford will announce its first-quarter 2024 financial results on April 24, maintaining a solid financial outlook. According to John Lawler, the company is on track to meet its operational targets for 2024.
These targets include achieving adjusted earnings before interest and taxes of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures between $8 billion and $9.5 billion.
However, market analysts anticipated a consensus EPS of $0.45, a decrease of 28.57% compared to the prior year’s $0.63.
Ford Stock Update
On Friday, F shares closed at $13.28, marking a 0.53% increase from the previous close of $13.21, while the S&P 500 gained 1.11% and the DJIA gained 0.80%. However, it outperformed Tesla, which fell 3.63% on Friday to $164.90 per share.
Over the past three months, the stock has risen 14.04%, while the year-to-date change stands at 8.94%. In the past 12 months, the stock has seen a change of 4.40% in comparison to the S&P500 52-week Change of 26.65%.
Ford shares concluded the trading session above the 50-day Moving Average of $12.43 and the 200-day Moving Average of $12.20. The stock’s 52-week High is $15.42, and its 52-week Low is $9.63. The Market Cap stands at $52.77 billion, with an average volume of 54.44 million shares over the past three months
On Monday, April 8, Ford was up 1.51% from its Friday closing price to $13.48 per share as of 11:40 AM EDT.
Is Ford Stock a Promising Investment Opportunity?
Ford Motor Company’s recent announcements signify a strategic shift towards a more robust EV lineup, reflecting its commitment to technological advancement and market adaptation.
The delay in the launch of key EV models indicates a prioritization of quality and innovation over rushed timelines, ensuring customer satisfaction and long-term profitability. Moreover, Ford’s expansion into commercial EVs and battery production underscores its dedication to sustainable mobility solutions.
From a financial perspective, while Ford’s first-quarter earnings forecast indicates a slight decrease compared to the prior year, the company remains steadfast in achieving its operational targets for 2024.
According to Wall Street, Ford Motor Company’s stock is currently priced lower than its industry peers, an opportunity to buy at a comparatively inexpensive rate. With a price-to-earnings ratio of 12.2, below the industry average of 19.05, Ford’s valuation indicates growth potential.
Analysts anticipate a 68% increase in earnings over the next few years, further enhancing the company’s appeal. Existing shareholders may consider accumulating more shares, while prospective investors could find Ford an attractive investment opportunity.
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