Sometimes it pays to make nice to the new guy, even if the new guy is the old guy and the old guy really does not like the deal you have with the United States Post Office. That is what is going on for legacy automaker Ford (F) right now as it is offering a special gift to the Trump inauguration coming up in just a few weeks. Ford investors, meanwhile, resented this modestly, and sent shares down fractionally in Monday afternoon’s trading.
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A report from the Detroit Free Press noted that Ford will be donating a cool million dollars to the inauguration efforts, along with what is described as a “fleet of vehicles.” While the report offered little more than that, it did offer plenty of perspective on reasons why the offer was made.
With an electric vehicle credit likely to get cut, and at a time when Ford needs every credit it can get to build its electric vehicle futures, Ford is likely eager to curry favor with the incoming president. Throw in likely tariffs on Mexico over border security issues and the reasons Ford would like a more lenient presidency coming in than has been heard of so far makes plenty of sense. In fact, Jim Farley—Ford’s current CEO—noted he was “optimistic” that Trump would at least be willing to hear Ford out on issues that are likely to impact American jobs.
The Electric Explorer Epic
Meanwhile, an unexpected story from Wired illustrated Ford’s electric vehicle (EV) outlook in a nutshell, both good and bad, by relating it all to the launch of the electric Explorer. The Explorer is one of Ford’s biggest brands, so bringing out an electric version makes a certain amount of sense. And Ford got quite a bit right about it, but not all of it.
The electric Explorer, the report note, had been in the works for years. Early previews started up in 2022, and by 2023, the previews went into wider release. But then actually selling the car got pushed into 2024, and that found the electric Explorer taking on a whole range of competitors that may not have been there had Ford moved a little faster. And by the time Ford was ready to offer the Explorer on a wider scale, it pulled, at least mostly, out of the field. While reports called the electric Explorer “clever and innovative,” it mostly missed its window and ultimately fell flat.
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 15.25% loss in its share price over the past year, the average F price target of $10.89 per share implies 10.17% upside potential.
