Latest news with #Roeska
Axios
10 hours ago
- Automotive
- Axios
Ford: We will match China's EVs on costs
A few details are emerging about Ford's affordable EV project, due in 2027. Why it matters: Ford, like other global automakers, is scrambling to make electric vehicles profitably and still compete with lower-cost Chinese brands. Catch up quick: In early 2024, Ford CEO Jim Farley revealed a small California-based "skunk works" team, led by a former Tesla engineer, to develop a low-cost EV platform. Since then, the project, now known as the Advanced Electric Vehicle Program, has grown to 500 team members with offices in three locations. Driving the news: Ford is keeping most details under wraps, but Lisa Drake, who leads Ford's EV industrial plan, shared a few nuggets during a "candid dinner discussion" with investors last week hosted by Bernstein's lead automotive analyst, Daniel Roeska. Zoom in: Ford's new EV platform will support up to eight body styles, she told the group, including trucks, crossovers, and possibly sedans. Ford has already said the first product will be a mid-sized pickup truck, but Roeska said he inferred from Drake's comments that it may resemble an electric Ranger. It will use prismatic LFP batteries, developed with China's CATL and produced in the U.S., to keep costs low. "With eight body styles and potential global applicability, it's intended to underpin Ford's EV strategy for much of the next decade," Roeska wrote. Behind the scenes:"Lisa Drake was explicit: Ford intends to match the cost structure of leading Chinese players. That means not just battery pricing, but full system cost from chassis and thermal systems to inverters and electronics," he wrote. Yes, but: Ford's EV math hinges on an estimated $700 million in federal tax credits the automaker is counting on to help offset the $3 billion cost of a new battery cell plant under construction in Michigan.
Globe and Mail
09-04-2025
- Automotive
- Globe and Mail
‘There's Nowhere to Hide' from Tariffs, So Analysts Think You Should Sell This 1 Left-for-Dead Stock Here
Ford (F) is often touted as a legacy automaker that produces the majority of its vehicles in the U.S. However, that won't prove sufficient in protecting it against significantly higher tariffs under President Donald Trump, warns Daniel Roeska, a Bernstein analyst. On Wednesday, Roeska downgraded Ford stock to 'Sell' and lowered his price target on the car giant to $7 that indicates potential downside of another 20% from current levels. Note that F shares are already down about 17% versus their year-to-date high in late January. Why Made Bernstein Turn Its Back on Ford Stock? Bernstein analyst Daniel Roeska expects Trump's recently announced tariffs to result in a meaningful increase in vehicle prices. Often, such increases in vehicle prices result in significantly lower demand. Against that challenging backdrop, he's not entirely sure if Ford will be able to continue paying a dividend. While the multinational manufactures about 80% of its vehicles in the United States, higher tariffs on auto parts could still lead to a material decline in Ford's earnings and free cash flow this year, the analyst added. In his research note, Roeska slashed his forecast for Ford's earnings per share (EPS) from $1.46 to $0.86 only in 2025. Bernstein Is Dovish on the Entire Auto Sector Bernstein's dovish view is not restricted to Ford only. Last week, the investment firm downgraded its peer General Motors (GM) as well, indicating there's really nowhere to hide from tariffs in the auto sector. All in all, the recently announced levies on vehicle imports could result in billions of dollars in losses for the Detroit automakers, Roeska warned in his research note today. Investors should note that Ford's management itself guided for a difficult year ahead in February. At the time, the NYSE-listed firm lowered its adjusted EBIT outlook for 2025 to $8.5 billion (top end of the range) – well below analysts' forecast of $8.3 billion and the $10.2 billion it recorded last year. Street's Mean Target on Ford Still Represents Upside Tariffs have made other analysts turn their backs on Ford stock as well. The consensus rating on Ford currently sits at 'Hold' and the mean target has come down sharply to $9.73 in 2025. However, compared to current levels, that still represents potential upside of 12%.
