In marketing, there are just some things you do not do. Endorsing competitors’ platforms falls on that list. Legacy automaker Ford (F) ran afoul of this recently as CEO Jim Farley has been driving a certain electric vehicle for the last six months and will not give it up. The problem: it is not a Ford model.
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Jim Farley’s electric vehicle of choice is reportedly a Xiaomi (XIACF) Speed Ultra 7. He has been driving the car for the last six months, has declared it “fantastic,” and does not want to go without it. This is, of course, the same Jim Farley that declared Chinese electric vehicles an “existential threat” to the U.S. auto industry.
This is not the first time that Farley has had praise for the market that may well kill a chunk of his own. He called the BYD (BYDDF) Seagull “pretty damn good,” and also noted that Xiaomi is “…sold out for six months,” on the back of sales ranging between 10,000 and 20,000 per month.
The Ford Car Hole
In another twist, a media report detailed a cave somewhere around Missouri that is stuffed full of Ford vehicles. At first, some thought it was a kind of a temporary measure, a picture taken of old Maverick cars from the 1970s that illustrated a reaction to temporary dealer overstock.
But no, this is not temporary, or limited to the 1970s. Apparently Ford has been keeping cars in this cave system in Missouri for the last seven decades. The cave system in question is known as “SubTropolis,” and it is a business complex that offers remarkable constancy. The cave system—a massive limestone complex—boasts a constant 40% humidity, and temperatures year-round are generally found between 68 and 72 degrees, making it a perfect choice for storage.
Is Ford Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on F stock based on five Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 4.1% rally in its share price over the past year, the average F price target of $12.12 per share implies 9.49% upside potential.
