Last week’s $16.45 high may have marked a peak for Ford (F) shares. The company introduced its long-awaited F-150 with great fanfare. General Motors (GM) already announced an EV push costing billions with the same buzz.
Besides a weekly drop of 4.3% on F stock, why should shareholders price for underperformance next?
Tesla (TSLA) did not mention its Cybertruck EV for months. The EV giant turned its attention to a $131,000 Model S Plaid, instead. With that out of the way, EV investors may dump Ford stock and accumulate TSLA stock instead. Plus, speculators may sell Lordstown (RIDE), Lucid, through Churchill Capital (CCIBV), as the weaker names dip.
In the last year, Ford stock rose on investor interest for the F-150 EV, the Bronco launch, and the Mustang EV. But the Bronco’s delay, the tepid response to the Mustang brand, and profit-taking are risk factors. Ford has a history of over-hyping its products with announcements. Its product rollout may follow with recalls and production issues.
The supply chain constraints EV and automobile manufacturers face does not help, either. While XPeng (XPEV) and Nio (NIO) rose, Ford is a global firm with many moving parts. That comes with ongoing costs and limited sales. This could add pressure to the stock in the coming months.
