GM - Ford: Being A Legacy Automaker Is Fashionable Again

2024-05-02 09:00:00 ET

Summary

• Ford investors showed why being a legacy automaker is sustainable.
• Ford has a profitable core business bolstered by an increasingly robust Ford Pro commercial business.
• Ford can manage its EV investments prudently as growth and adoptions slow.
• Pure-play EV makers don't have the luxury, as they put all their chips in one segment.
• Betting on an undervalued Ford stock to recover seems astute, as Tesla and its EV peers suffer from a persistent EV growth slowdown.

Ford is Fashionable Again

Ford Motor Company ( F ) investors have escaped the battering observed in the pure-play EV space as EV growth slowed markedly. As a result, Ford's well-diversified business segments have provided F investors some respite, even though Ford's crosstown rival, General Motors ( GM ), has seen GM stock outperform F stock significantly. Accordingly, GM delivered a 35% total return over the past year, outperforming F's 6.2% total return over the same period....

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