'If It Doesn't Stay, it Will Imperil What We Do in Marshall.' Ford Stock (NYSE:F) Gains Despite Battery Factory Threat
Is there trouble ahead at legacy automaker Ford (F)? It may be so, as new signs of declining federal funding for electric vehicles may be about to hit Ford at the battery factory level. Especially given one of the big battery factories Ford has at Marshall. Investors took the news oddly well, though, and sent shares surging upward nearly 2.5% in Friday afternoon's trading.
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We know that the government has been looking to save a few trillion bucks ever since the Department of Government Efficiency (DOGE) got fired up in earnest. And while it has found a whole lot of potential savings—savings that, even now, are looking to be actively codified into law—there are always other places to look. And production tax credits for electric vehicle batteries may be on the chopping block next.
That, in turn—notes Ford's executive chair Bill Ford—would '…imperil what we do in Marshall,' referring to the battery plant in Marshall, Michigan. Ford elaborated 'We made a certain investment based upon a policy that was in place. It's not fair to change policies after the expenditure has been made.' Indeed, Ford is not without a point, but Ford must keep in mind that that policy was made by an administration that no longer exists.
Tackling Pikes Peak
Annually, Ford has a particular goal in mind for its electric vehicles, a demonstration of their sheer capability known as the Pikes Peak International Hill Climb. Ford has been in on the action for the last three years, and delivered some impressive wins. But this year might be the most impressive yet, as Ford brings a Mach-E Mustang to the hill climb event, and it is looking pretty sharp.
Ford revealed back in January that the Pikes Peak run would be a Mustang Mach-E event, and the early word out about the car intended for that run. Reports note that the nose design, and much of the front, is clearly reminiscent of a Mach-E, but the rest of the car has been fundamentally redesigned for the event. Packing a front splitter, a rear wing, and a rear 'ground effect tunnel,' this car has been given the full treatment to give it the best chance at Pikes Peak. The combined effect yields—brace yourself—6,125 pounds of downforce. We will see how this does once the event concludes in late June.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 15.75% loss in its share price over the past year, the average F price target of $9.71 per share implies 6.95% downside risk.
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