The problem for iconic automaker Ford (NYSE:F) is, greater than the rest, to show that it’s nonetheless related. Upstarts like Tesla (NASDAQ:TSLA) have been stealing Ford’s thunder lately. And lots of merchants favor the attract of “hot” stocks over secure, regular F stock.
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Nevertheless, Ford is making aggressive strikes to remain present. There’s a brand new and thrilling function that may very well be rolled out subsequent 12 months. Plus, an outdated pickup-truck standby may be getting a makeover (or not less than a redesign) within the close to future.
Are these initiatives nothing greater than a last-ditch try from an automotive dinosaur? Or do they sign a recent reboot of an automaker in rebound mode? Preserve this web page open as we study Ford’s battle for relevancy and, subsequently, profitability.
A Nearer Take a look at F Stock
However first, a look at how the shares have fared in latest weeks. For a really very long time, F stock was magnetized to the $10 degree. Right this moment, that’s a long-term goal price because the onset of the novel coronavirus put robust downward strain on F shares this 12 months.
Ford, and American automakers usually (aside from Tesla), didn’t expertise a swift restoration from the Covid-19 crash. Simply getting F stock again to the $6 degree, after which holding it there, was a significant battle for the bulls.
It additionally doesn’t assist that the early-June push to the $7.50 degree was promptly rejected. Evidently the sellers are tenacious and the patrons will want a robust push on heavy quantity to get F shares again to $10.
Exploring the Explorer
The F-150 pickup truck is Ford’s best-selling automobile. Even past that, it’s the best-selling automobile in america. So, Tesla’s electrical autos is perhaps buzz-worthy, however in the meanwhile, the F-150 is as American as scorching canines and apple pie.
And for Ford, the F-150 and different F-series autos are the automaker’s bread and butter. Imagine it or not, 29% of light-truck gross sales within the U.S. final 12 months had been from Ford’s F sequence. The truck line is profitable sufficient for Ford that it allows the automaker to finance different, seemingly extra formidable tasks.
However now, Ford is proving that the outdated F-series could be formidable too. Followers of the F-150 will get to witness the primary main replace on the pickup since 2015.
Plus, a fair greater improve may be on the way in which in 2022. That’s when Ford may launch an all-electric model of the F-150. In the long term, that may very well be dangerous information for Tesla however nice information for Ford’s shareholders.
The ‘Stang Goes Electrical – and Arms-Free
Is it potential that Ford goes all in on the electric-vehicle revolution? Plans for an all-electric F-150 recommend that the outdated carmaker may need some new tips. And there’s extra to the story as an electric-powered Mustang is reportedly within the works.
The proposed launch of the absolutely electrical Mustang Mach-E for later this 12 months is large information. The Ford Mustang is simply as iconic and intergenerational because the F-150. It’s often called an old-school muscle automotive, and the shift to an electrical Mustang is a daring however savvy transfer on Ford’s half.
But, that’s not even the headline information improvement right here. What everyone appears to be specializing in is a brand new function to be added to the Mustang Mach-E in 2021. It’s often called Energetic Drive Help, and it allegedly permits for hands-free driving.
The hands-free function of Energetic Drive Help will supposedly work on roughly 100,000 miles of highways all through america and Canada.
Just like the push to make the F-150 electrical autos obtainable, the arrival of Energetic Drive Help presents a direct and credible menace to Tesla. For long-term Ford shareholders, there’s now motive to consider that F stock isn’t only a secure funding, however a growth-focused asset as properly.
The Backside Line on F Stock
Ford’s efforts to make acquainted automobile models thrilling to new generations of automotive and pickup patrons are commendable. Whether or not they’ll be efficient stays to be seen.
However not less than Ford’s pushing ahead and staying aggressive, and that must be encouraging for F stockholders.
David Moadel has offered compelling content material – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Fintech Zoom, and (after all) InvestorPlace.com. He additionally serves because the chief analyst and market researcher for Portfolio Wealth World and hosts the favored monetary YouTube channel Trying on the Markets. As of this writing, David Moadel didn’t maintain a place in any of the aforementioned securities.
