While Ford (F) is gutting the bonus system for managers, and pushing back production on the F-150’s new model, it did have one high point recently emerge. It turns out that its research and development (R&D) team is particularly cost-efficient. It might have been better if they were rolling out innovations, but take your wins where you can find them. That was the attitude investors had, and Ford shares ticked up fractionally in Thursday afternoon’s trading.
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For about the last three years now, reports note, Ford has had a “skunkworks team” working on a new, low-cost platform for future electric vehicle development. That would have given Ford a considerable advantage in the market, and also would have let Ford adapt the platform to several form factors. A new mid-sized pickup, for example, was on the docket for future development.
While we do not know much about how the research is going, we do know—thanks to the new reports—that the R&D team in question is being very careful about how it spends its development funds. That is the word from Jim Farley, Ford’s CEO, who noted that “…literally, we did it on $0.30 on the dollar, compared to what Ford would develop (for) the same platform.” This will be fantastic if it actually bears fruit, but even in the event of complete failure, at least it lost less than it ordinarily would have.
Ford Still Makes Gas Cars
With all the developments of late around the electric line, some might forget about Ford’s gas-powered lineup, still a major part of its operation. One such car recently got a test drive, the 2025 Explorer ST. And the early reports around that one suggest that Ford might have a winner on its hands.
The Explorer ST comes with a particularly “powerful engine,” reports note, offering up high-end acceleration in a package that looks surprisingly sporty and comes with several powerful new features as well. Though the price tag is up in the $65,000 range, reports note, the end result is that this could be a vital new addition to Ford’s lineup. Assuming, of course, it is not plagued with recalls early on.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, eight Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 17.07% loss in its share price over the past year, the average F price target of $10.56 per share implies 13% upside potential.
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