Ford Motor Co plans to build up to 500,000 electric trucks a year at its BlueOval City complex under construction in western Tennessee, the automaker said on Friday.
Chinese battery giant CATL plans to start this year the mass production and delivery of batteries based on a new materials technology, M3P, which will perform better and cost less than nickel and cobalt-based ones, its chairman said.
Ford Motor Co expects its electric vehicle business unit to lose $3 billion this year, but remains on track to achieve a pretax margin of 8% by late 2026, the company said.
High-yield dividend stocks can be great for managing the ongoing reset in global equity markets. That said, these highly coveted income plays can also be fraught with risk, so it's important for investors to understand the threats and opportunities of the business behind the yiel
(RTTNews) - Ford Motor Co (F) said Thursday that it expects to report loss of about $3 billion in its electric-vehicle business this year. It will begin reporting its financial results by business unit, instead of by region.
Ford Motor Co expects its electric vehicle business unit to lose $3 billion this year, but remains on track to achieve a pretax margin of 8% by late 2026, the company said.
Ford F finally unveiled its mid-sized electric Explorer SUV, a remake of its iconic and best-selling Explorer SUV. The model has been built on Volkswagen’s VWAGY modular electric drive matrix (MEB) platform and is expected to be available for less than $50,000 or €45,000.
By 2030, the automobile market will look quite different than it looks today. Electric vehicles (EVs) will likely have become the best sellers, solely because many auto manufacturers will be phasing out internal combustion engine (ICE) vehicles around that timeframe.With as massi
The past several weeks have been volatile ones for the market, upending what looked like a budding bull market. The S&P 500 now sits 6% below its early February peak, seemingly unable to get back above a proverbial hump. Of course, some of the S&P 500's stocks are doing m
Multiple automakers, including legacy auto giant Ford (
NYSE:F
), have slashed the prices of their
electric vehicles in China since Elon Musk-led Tesla (
NASDAQ:TSLA
) triggered a price war by
cutting prices for its Model 3 and Model Y vehicles. Auto companies are trying to spur demand amid a weak economy in China and rising competition. Additionally,
China has ended subsidies for the purchase of new energy vehicles. Consequently, automakers are trying to attract customers with notable discounts.
Moreover, some EV makers are trying to attract buyers through promotional offers ahead of next month’s Shanghai car show, where the latest models are generally launched.
Intense Price War
Foreign automakers are finding it difficult to compete with China’s local EV makers,which have emerged rapidly in recent years. As per
Reuters, earlier this month, Ford started offering a discount of 40,000 yuan (over $5,700) on its Mustang Mach-E electric SUVs in China until the end of April. Also, the Detroit-based carmaker reduced the prices of Mach-E by as much as $5,900 in the U.S. market in January, following Tesla’s price cuts for the Model Y crossover.
Ford seems to be trying to revive demand for Mach-E in China. Citing industrial data, the
Wall Street Journal noted that only 84 of the standard version of the battery-powered Mustang Mach-E SUV were sold in China in February, significantly down from about 1,500 in December. It’s worth noting that the spike in December sales was triggered by about a 9% discount on the original price.
China, the world’s largest car market, is not only witnessing EV price discounts but also price cuts on gas-powered vehicles. As per the
Wall Street Journal, some dealers of General Motors’ (
NYSE:GM
) Cadillac are offering short-term discounts of about 25% on the CT5 combustion-engine sedan. General Motors has been losing ground in China over recent years. A recent
CNBC report noted that GM’s market share (including joint ventures) in China fell from about 15% in 2015 to 9.8% in 2022.
Meanwhile, last week, the joint venture between Germany’s Volkswagen (
DE:VOW
) and China’s SAIC Motor started offering 15,000 Yuan to 50,000 Yuan in discounts until April 30 for its full lineup of gas-powered and EVs. Daiwa Capital Markets analyst Kelvin Lau highlighted that gas-powered car dealers intend to clear out about 500,000 vehicles in their inventory, including older models that won’t meet tighter emission standards that will become effective in July.
Aside from foreign carmakers, several Chinese auto companies are also lowering prices to boost demand. Overall, the price war could shrink the margins of automakers at a time when they are already facing high input costs and subdued demand.
Is Ford a Good Stock to Buy?
Ford is aggressively pursuing its EV growth strategy. Nonetheless, a tough macro backdrop and the ongoing price war could hit its margins. Wall Street is sidelined on Ford, with a Hold consensus rating based on four Buys, seven Holds, and three Sells. The average
Ford stock price target of $13.08 suggests 11.6% upside potential.
Conclusion
Many automakers have joined the price war started by Tesla to boost demand. These price wars could significantly hurt the profitability of carmakers if they don’t see a substantial rise in volumes following the price cuts.
Disclosure
What happened
Electric vehicle (EV) makers are working hard to challenge Tesla's leading market share, and the stocks of three popular names jumped today. It wasn't just the large legacy carmakers Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) that have investors buyi
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Ford Motor Company (F) closed at $11.18 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's 0.89% gain on the day. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.
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