Ford (NYSE:F) stated on Tuesday that its vehicle sales in the U.S. rose year-over-year by 11.2% in May to 190,014 vehicles. This increase was fueled by a strong sales growth for its all-electric and hybrid models. The automaker reported robust sales of both hybrid and all-electric vehicles, demonstrating a 65% rise in sales year-over-year in May to 26,600 vehicles. In contrast, sales of Ford’s traditional vehicles, that use internal combustion engines (ICE), increased by 5.6% in May to 163,417 vehicles.
Year-to-date, Ford’s U.S. sales throughout May went up by 5.6% year-over-year to 877,685 units. The jump in sales was attributed to a 10% increase in SUV sales and a 2.5% increase in truck and van sales.
Ford’s Rising EV Sales
Albeit Ford’s EV sales are rising, its Model E electric vehicle unit is reporting massive losses. The company is focused on increasing the sales of its EVs despite tightening fuel economy standards and emissions.
In April, the company’s EV business reported a loss of $1.32 billion in the first quarter. While this business also includes EV-related segments such as software, the business’s first-quarter loss shows that Ford is making a loss of $132,000 on every EV it sells. Interestingly, Ford’s EV business sold 10,000 vehicles in the first quarter, which explains the loss of $1.32 billion (10,000 EVs x -$132,000 per EV = $1.32 billion).
In May, Ford almost doubled the sales of its all-electric F-150 Lightning pickups to 3,260 units. Sales of the Mustang Mach-E EV also jumped by 46% year over year to 4,255 vehicles.
Is Ford Stock a Buy Right Now?
Analysts remain cautiously optimistic about Ford stock, with a Moderate Buy consensus rating based on seven Buys, five Holds, and one Sell. Over the past year, Ford has increased by 2.5%, and the average Ford price target of $15.25 implies an upside potential of 25.9% from current levels.
