Ford’s U.S. Sales Decline; Shares Fall

Due to supply-chain issues and global chip shortages, Ford Motor Company (NYSE: F), one of the top EV stocks on TipRanks, reported a drop in vehicle sales in the U.S. for December and full-year 2021. Notably, the numbers also lagged its peers, Toyota Motor (NYSE: TM) and General Motors Co. (NYSE: GM), in 2021.

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Following the news, shares of the American multinational automobile manufacturer closed 2.67% lower on Wednesday.

Vehicle Numbers

Ford reported a 17.1% year-over-year decline in total U.S. sales in December 2021 to 173,740 vehicles. Total truck sales dipped 15.5% to 91,699, while sales of SUVs were down 11.1% to 77,377.

On a positive note, Ford’s electrified vehicles grew 36% faster than the overall segment in 2021 and achieved a new sales record for the month of December and full-year 2021. Markedly, sales of electrified vehicles rose 121.1% year-over-year to 12,284 in December.

For 2021, total U.S. sales were down 6.8% year-over-year to 1,905,955 vehicles. Notably, truck sales were down 8.2% to 1,011,198, while SUVs sales jumped 10.4% to 827,278.

Milestones Achieved

Per the company’s report, Ford recorded its best-ever year for electric vehicles sales, coming in just behind Tesla (TSLA) in 2021. Markedly, Mustang Mach-E sales came in at 27,140 in 2021. Beginning in 2022, Ford will commence customer deliveries for both the F-150 Lightning and E-Transit electric vehicles, expanding its share of the EV market.

Ford was the bestselling automaker in the fourth quarter. The company recorded quarterly sales of 508,451 vehicles, up 26.8% sequentially, compared to an overall industry decrease of around 3%.

Having sold 162,979 vans, Ford marks its 43rd straight year as America’s best-selling commercial van lineup.

Additionally, the F-Series was the best-selling truck for the 45th straight year and the best-selling vehicle in America for the 40th year in a row.

Recently, Ford revealed its plans to nearly double the production of its F-150 Lightning pickup to 150,000 trucks annually.

Official Comments

Andrew Frick, VP, Ford Sales U.S. and Canada, said, “Ford finished the year strong, as the only U.S. automaker hitting the half million sales mark in the fourth quarter, making Ford America’s best-selling automaker…Looking to the new year, Ford had just over 70,000 new vehicle orders in December, which will provide continued momentum into 2022.”

Wall Street’s Take

On January 5, CFRA maintained a Buy rating on the stock and lifted the price target to $32 (35.25% upside potential) from $8.

The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 10 Buys, 5 Holds, and 3 Sells. The average Ford price target of $20.59 implies 13% downside potential from current levels. Shares have gained 69.1% over the past six months.

Smart Score

Ford scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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