Legacy automaker Ford (NYSE:F) announced that it’s cutting jobs at the Dearborn, Michigan factory responsible for the F-150 Lightning electric truck due to a dip in electric vehicle demand. Out of 2,100 workers at the Rouge Electric Vehicle Center, 700 will shift to the Michigan Assembly Plant, aiding in the production of the Bronco and Ranger, while another 700 will stay at the F-150 plant. The rest face the decision between a $50,000 retirement offer or relocation within Michigan.
This move highlights the automaker’s struggle with adjusting to fluctuating electric vehicle market demands. Nevertheless, Ford remains committed to its electric vehicle strategy, emphasizing not the question of if but when the electric vehicle market will align with its prepared capacities and investments. This strategic pivot reflects Ford’s longer-term confidence in the electric vehicle sector, even as it navigates short-term market adjustments.
Is Ford Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Ford stock based on five Buys, five Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 20% rally in its share price over the past year, the average Ford price target of $13.48 per share implies 3.22% upside potential.
