Ford Motor Co (NYSE: F) could find “mild relief” as President-elect Donald Trump eases emissions regulations next year, as per a Jefferies analyst. Philippe Houchois, nonetheless, expects 2025 to be another weak year for the legacy automaker due to the inventory overhang.
Ford's stock draws a downgrade as an analyst sees more underperformance ahead for the auto giant.
The U.S. Energy Department on Monday said it has finalized a $9.63 billion loan to a joint venture of Ford Motor and South Korean battery maker SK On to help finance construction of three new battery manufacturing plants in Tennessee and Kentucky.
Jefferies downgrades shares of the car manufacturer to Underperform from Hold and cuts its price target to $9 from $12.
Ford Motor Company (F) has enough on its plate already. Sales in China are struggling, it has higher production costs than many competitors, its warranty costs have weighed on recent quarterly profits, and the company has pushed back roughly $12 billion in electric vehicle (EV) developments due to massive losses with its model-e division.
[00:00:00] Douglas McIntyre: Interesting anniversary coming up at the Ford Motor Company.
Given the EV division losses, ongoing warranty and cost issues, and heightened competition, it might be difficult for F stock to win back investors in 2025.
Ford Motor Company (F) closed the most recent trading day at $10.41, moving -1.42% from the previous trading session.
Ford Motor's stock is undervalued with a 6x P/E ratio and offers a 6% dividend yield, presenting a compelling risk/reward opportunity. Despite current losses in the EV division, robust EV sales growth and future profitability potential make Ford an attractive long-term investment. Supplier disruptions have led to a lowered profit forecast for 2024, but resolving these issues could boost future earnings and stock performance.
German chancellor Olaf Scholz called for subsidies for battery makers to protect jobs and drive the transition towards “electromobility”
Ford is struggling with consumer acceptance of BEVs and has postponed $12 billion of its $50 billion BEV investment due to market and political uncertainties. The election of Donald Trump and potential regulatory relaxations could reduce pressure on automakers to develop BEVs, impacting Ford's strategy and profitability. Ford is shifting focus to gas-electric hybrids to bridge the gap until BEVs become more affordable and practical, while Chinese automaker BYD excels in BEV and hybrid technology.
The Consumer Reports Automotive Report Card is among the most carefully watched surveys of auto reliability in the US.