EV stock prices have been under pressure in recent months due to lack of infrastructure for charging, anxiety about range, the cost of ownership of an electric car, and issues with supply chains.
These headwinds forced several automakers to scale back their expansion plans into electric vehicles and focus instead on hybrids.
Ford Motor Co. (NYSE:F) does not appear to be one of those companies.
Ford has set its sights on hybrids, but the company isn’t giving up entirely on electric vehicles.
Ford announced on Monday that it would be offering a “Ford Power Promise”, allowing customers to choose to have their home charging equipment installed for electric cars.
Ford Power Promise may help boost EV sales
Ford Motors expects that its new initiative will lower the costs of owning a vehicle powered by electricity and boost sales.
The automaker also plans to reopen its Chennai factory, India. It is rumored that the plant will be used to export EVs out of India.
Ford’s stock is a good choice for exposure in the electric vehicle space, especially with its attractive dividend yield and price-to earnings multiple of 11.
Ford’s commitment to electric cars is also important because it could help the company regain some market share in China, which has been switching to EVs at a rapid pace.
In July, more than half of new cars sold in the United States by General Motors were electric.
Ford Model e is burning cash fast
Victoria Greene, of G Squared Private Wealth, is not impressed by Ford’s stock.
Chief investment officer anticipates that the F-share price will continue to plummet to $9.70 in future, which is an approximate 8.0% drop from now.
Last week, she said to investors that they were losing ground because “they just couldn’t pull themselves together”.
Ford’s F-150 is all it has, and this is not enough for them to compete with the electric vehicle space.
Ford Power Promise is unlikely to be enough to turn the Model e business into a profitable one.
The fact that no US automaker has been able to launch an electric vehicle under $30K will also make it extremely difficult for the US carmakers to compete with BYD, which Charlie Munger, the late investor, once claimed was “so much ahead of Tesla China that it is almost absurd”.
The post Ford Stock: Is it Still a Good EV Play? This post may change as new information becomes available
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