2024-02-15 09:31:03 ET
Summary
- Ford has continued its remarkable recovery since mid-January 2024, corroborating the strength in its previous bottom in October/November 2023.
- The market has returned its focus to Ford's core automotive business, after the UAW debacle late last year.
- Ford's management is reassessing its aggressive push into EVs and plans to temper its EV-related investments in 2024, given the recent "seismic change."
- I explain why the EV growth slowdown is good for Ford, allowing it more time to milk its more profitable core business and work on its next-gen products.
- With F forming its long-term lows in late 2023, the recovery momentum looks set to carry on. Maintain Buy.
Ford Motor Company (F) investors who picked F's lows in mid-January 2024 have benefited from its recovery, corroborating the strength of its previous bottom in October/November 2023. As a result, I assessed that the market had moved well past the battering attributed to the UAW labor agreement. I urged investors to capitalize on F's recovering momentum in my December update, seeing a more constructive setup as we headed into 2024. Therefore, with the market returning its focus to Ford's core automotive business, it should offer investors more clarity, notwithstanding the vagaries surrounding its Model e segment (Ford's EV business) in 2024....
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Ford: EV Growth Slowdown Is Good