For a while, legacy automaker Ford Motor Co. (F) was doing well against the likes of Tesla (TSLA). But a recent reversal will come as a blow to anyone who was hoping that Ford could hold out in the EV market.
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Reports today state that Tesla’s Cybertruck has managed to push past the Ford Mach-E to become the third best-selling electric vehicle in the U.S. That was a welcome development for Tesla, but not so much for Ford. Now, the entire top three of electric vehicle sales in the U.S. is a clean sweep for Tesla: the Model 3, the Model Y, and the Cybertruck.
Perhaps even more galling for Ford is that the Cybertruck was the most expensive Tesla vehicle for a while, which meant that, even at a comparative discount, Ford’s Mach-E just could not hold up against the Tesla nameplate. Ford managed to sell around 13,000 Mach-E vehicles in this year’s third quarter, and only another 7,000 F-150 Lightning pickups.
Not Giving Up Without a Fight
Ford is not planning to cede the field in the EV sector. In fact, a new report noted that Ford has something of an ace up its sleeve for future electric vehicle sales: free charging stations. The report said that anyone who buys a qualifying vehicle will get a Level Two charging station at no charge and installed for free.
Furthermore, Ford might be in line for a little extra goodwill, and word of mouth marketing, thanks to Ford’s Garage, a new line of car-themed restaurants that is rapidly spreading. Its first Long Island location will open November 2 at the Smith Haven Mall, and will feature plenty of automotive memorabilia along with a beer-and-burgers menu.
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 4.46% rally in its share price over the past year, the average F price target of $12.12 per share implies 7.88% upside potential.
