Legacy automaker Ford (F) may be about to dodge a bullet, as we found out that President Trump has been talking to Ford—and also to General Motors (GM) and Stellantis (STLA)—about the possibility of at least a delay, if not an exemption, for the United States automobile industry when it comes to tariffs. That news caught investors’ attention, and sent shares blasting up nearly 6% in Wednesday afternoon’s trading.
Reports noted that both automakers got calls from Trump suggesting that delays on the tariffs could certainly be possible. In fact, they were so possible that they turned out to actually take place. Now, the tariffs on Ford will note actually start up after 30 days. More specifically, the tariffs now no longer apply to vehicles produced in Canada and Mexico, in accordance with the 2020 United States-Mexico-Canada Agreement rules relating to product origin.
Trump agreed to the temporary reprieve, admonishing the automakers to “…get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff.” Now, the automakers will need to brace for the impact to happen all over again starting April 2, when not only the tariffs will come back, but so too will “reciprocal” tariffs to match the tariffs that other countries put in place.
A Boost From Gronk
Meanwhile, Ford got an unexpected boost from NFL tight end Rob Gronkowski, sometimes known as “Gronk,” who as it turns out is a Ford enthusiast. Indeed, noted reports, Gronkowski routinely drives an F-150 Raptor, and mostly because he finds the truck fitting.
Gronkowski inherently knows that offensive linemen drive Raptors, reports note, as they love both the F-150 and the “big tires.” Gronkowski noted that drivers of smaller sedans like the Honda (HMC) Accord are likely to be “…an undrafted free agent” or a “…rookie trying his best to make the team.” If the Ford marketing division was not frantically taking notes with that one, I would be profoundly surprised, as this is a campaign that all but writes itself.
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 two Sells assigned in the past three months, as indicated by the graphic below. After a 16.07% loss in its share price over the past year, the average F price target of $10.76 per share implies 11.85% upside potential.
