Ford shares have reached a multi-year high
Shares of Ford Motor Company (F) have risen above the $25 mark, which they last broke in 2001. At the end of trading on January 13, the F share was worth $25.02. In addition, investors have noticed a high consumer interest in Ford electric vehicles.
In May 2021, the likely popularity of the F-150 Lightning electric pickup truck and these expectations by the successful presale campaign of this car. In addition, the electric Mustang is selling well, from which they also expected a good start. As a result, Wall Street drew attention to the success of Ford and this week gave positive recommendations.
In particular, Mike Ward, an analyst at The Benchmark Company investment firm, called Ford’s line of cars the best in the last decade. Besides, the company has a large cash reserve, reducing investors’ risks. In addition, Ford could make a record profit thanks to sales in the US and other countries.
Against this background, raised the target price from $24 to $29. Currently, Ford is increasing the production of electric trucks F-150 Lightning at least twice – up to 150 thousand cars per year. Pre-orders for these cars have because Ford cannot meet the growing number of orders on time. If the vehicles prove the claimed performance characteristics, the demand may grow even more.
Electric pickups can significantly save many potential buyers and tiny businesses. However, spending on fuel and repairing cars with sizeable internal combustion engines absorb a sensitive portion of the profits from each trip to customers. The increase in fuel prices makes it necessary to increase the cost of services. In addition, due to the rise in the size of cars 1980s, the fuel consumption of pickups has not decreased.
