A while back, we heard about how legacy automaker Ford (F) was looking to make a return to India. There was supposed to be word of that move in January, but now that it is currently February, that did not happen as planned. So what did happen? A clear rethink in progress, one welcomed by shareholders, who bought in and sent shares up over 2% in Tuesday afternoon’s trading.
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Reports noted that, apparently, Ford’s board did discuss its return to India back in January. However, the ultimate outcome of that discussion was basically “status quo.” Ford is leaving things as they are on the India front, and has moved the date for a formal announcement on its plans to “late summer,” the reports noted.
Several factors contributed to Ford’s delay. One of the biggest is the newly-minted Trump administration, which clearly favors domestic investment over foreign entanglements. But Ford will also have to pull in a lot of new investment to get the Chennai plant in India back up and running to its fullest. Reports suggest it may take anywhere from $100 million to $300 million to do that job properly.
EV in Open Decline
Ford’s troubles do not end there. In fact, a new report out says that the F-150 Lightning electric pickup is getting hit hard by the Tesla (TSLA) Cybertruck. Some Lightning drivers are finding out the specs on mileage really do not line up well with real-world operations, and are increasingly dissatisfied with their purchase.
With potential tariff hits coming for Ford, analysts are starting to question just what Ford can do at this point. In fact, David Whiston with Morningstar noted that Ford would have a rough couple of years, as it would be “…pretty ugly for them on the EV side.” Recent record losses on electric vehicle (EV) operations for Ford have done it few favors as well.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on one Buy, six Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 6.6% loss in its share price over the past year, the average F price target of $10.47 per share implies 3.51% upside potential.
