Investors are keener on General Motors (NYSE:GM) and its prospects in electric vehicles, while Ford (NYSE:F) is getting ignored. Although both stocks are on a nice uptrend that began from the March bottom, Ford is performing relatively worse.
Investors who held F stock for the long-term distrust management’s performance history. Plus, the company struggled with its major product releases in the last year. The Lincoln SUV had issues. Various vehicles in the last few years had recalls, costing Ford its reputation and money.
The electric vehicle hype that accelerated when the S&P 500 said it would include Tesla (NASDAQ:TSLA) to the index will eventually lift Ford’s valuation.
The company’s Mustang Mach-E, F-150 Electric, and the 2022 E-Transit all-electric cargo van will lift its share price.
Hedge Fund Manager Paul Tudor’s investment in Ford will not get much attention. More importantly, UBS predicting Ford will struggle against GM is simply wrong.
Ford will go on its own to making its electric batteries. In the internal combustion engine space, the company will fill a void in the off-road segment. The Bronco is priced to win the mainstream customer.
2021 is finally a turning point for Ford and its shareholders. After cutting costs and boosting revenue, profits will rise and management may re-instate its dividend next.
Disclosure: Author owns Ford shares.
