Ford Motor Co. stock has experienced volatility, trading in a range of $8.44 to $11.97 over the past year, significantly down from $24 in early 2022. The company is facing major challenges, including significant financial losses from its electric vehicle investments, poor warranty performance leading to extensive recalls, and competition from superior Chinese EVs. Despite launching new products, sales remain low. Ford's management indicated risks ahead in its EV push, as they compete with numerous legacy automakers and new entrants. The stock does present a forward yield of 5.24%, offering some appeal to investors.
Ford shares have traded between $8.44 and $11.97 for the past 52 weeks, down from a peak of $24 in early 2022. Its likely next move is downward.
Ford has lost billions investing in EVs, with new products like the Mustang and F-150 selling only a few thousand units monthly, demonstrating a catastrophic decision.
The company's warranty expenses are the worst in the industry, with ongoing recalls and low-quality manufacturing leading to billions in write-offs and record recall numbers.
Management acknowledges that Chinese EVs are superior, posing an existential threat; Ford must innovate manufacturing processes to compete amid a massive EV market rush.
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