So, we have heard before that legacy automaker Ford (F) is eager to get a line of hydrogen engines going because burning water is a lot more ecologically friendly than burning gasoline. A new report from Ecoticias revealed just what Ford is doing to get its hydrogen engines up and running. Investors, however, were a little less than pleased, as shares dipped fractionally in Friday afternoon’s trading.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
While several auto companies are working to develop the hydrogen engine and augment their “sustainability” lineups, Ford is working to put out a hydrogen engine as part of a larger commitment to that ideal. The hydrogen engine is not without problems of its own, though, and Ford is working to develop solutions to these. For instance, one major problem is the issue of hydrogen storage.
Anyone remember the Hindenburg? You know, giant blimp, ball of fire, people shrieking, “Oh, the humanity!” A lot of that was because the hydrogen contained in it caught fire. Ford is working to protect drivers from potential calamity with hinged gas tanks that reposition the tanks in the event of a collision. Given that hydrogen engines generally come with hydrogen tanks stored at between 5,000 and 10,000 psi, a collision could potentially cause a dangerous explosion if the tanks aren’t securely positioned.
Meanwhile, in Electrics
An unexpected win for Ford on the sustainable vehicle front emerged just recently, as an Electrek report found that Ford is the “…fastest-growing auto brand in Saudi Arabia”, thanks in large part to the Mustang Mach-E. Additionally, in large swaths of the Middle East—including Kuwait, Qatar and Bahrain as well—Ford is picking up a lot of new enthusiasm for its lineup.
Nevertheless, as a report from Motor1 found, when it comes to electric vehicles, Ford is significantly behind the eight-ball that is General Motors (GM) right now. General Motors now produces more electric vehicles than Ford and is second only to Tesla (TSLA) right now. With Ford also less profitable than GM, the report noted, Ford is in a very bad position going forward as it has less cash in general to spend on research and development, among other things.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on five Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 20.47% rally in its share price over the past year, the average F price target of $11.75 per share implies 7.65% upside potential.
