Ford Motor (F) began the new decade with optimism as it emerged to compete in the era of smart vehicles and clean energy. The automaker is investing heavily in new technologies to keep pace in autonomous vehicles, ride sharing and electric cars. But does all that effort make Ford stock a buy right now?
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The unveiling of the Mustang Mach-E in November 2019 was a key milestone in the company’s pivot toward what it called “the digital future.” The Ford Mustang Mach-E, an all-electric crossover, made its commercial debut in the U.S. in late 2020. Ford is beginning production of the Mach-E, a competitor to the Tesla (TSLA) Model Y, in China as well. And Ford didn’t stop there — it now has an electric version of the F-150 coming this spring.
Ford’s investment in electrification helped push shares to a 140% gain in 2021. That led to Ford briefly surpassing General Motors (GM) in market cap for the first time in five years. But where does Ford stand now? If you’re thinking about buying shares, it’s key to analyze the fundamental and technical picture first.
Electric F-150 Launch
Ford is set to launch the highly-anticipated electric pickup truck next week. The F-150 Lightning model received 200,000 reservations when it was first announced last May. CEO Farley tweeted that the first electric F-150’s would begin to be delivered on April 26.
The truck’s initial $40,000 price tag has it set to vie with the Tesla Model 3 sedan which retails for $48,000. The Elon Musk-led car company will not begin producing its Cybertruck until at least 2023.
The F-150 Lightning launch is viewed as a pivotal moment in Ford’s turnaround. The automaker has invested billions in its transition to electric vehicle production.
Last month, Ford said that it would split the company’s EV business and gas-engine business in a major company reorganization. The Wall Street Journal reported that both operations will be kept in-house, “with separate names and their own leadership structures and profit-and-loss statements.” Ford stock jumped on the news.
Ford’s EV-focused business will now be…
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