The value of Ford stock remained stable during the December 2nd, 2019 – December 6th, 2019 timeframe. Shares closed the week at $9.02 per share, which represents a decrease of $0.04 per share, or less than 1 percent, compared to the prior week’s closing value of $9.06.
Ford shares saw the following movement during the week:
- Monday, December 2nd: Ford stock opened the day (and the week) at $9.08 and closed at $9.01
- Tuesday, December 3rd: Ford stock opened at $8.95 and closed at $8.89
- Wednesday, December 4th: Ford stock opened at $8.95 and closed at $8.95
- Thursday, December 5th: Ford stock opened at 8.97 and closed at 8.93
- Friday, December 6th: Ford stock opened at $8.96 and closed the week at $9.02, or $0.04 lower than last week
The minimal decrease in Ford stock is a bit of a momentum killer, as share values had finally rebounded last week after two weeks of decline. Most recently, Ford share values have been rising and falling slightly from one week to the next.
Earlier in the year, Ford stock saw three consecutive weeks of declines, which we believe was the result of lackluster third-quarter 2019 sales performance. Even so, the decrease in Q3 2019 sales volume was to be expected as the automaker overhauls its key crossover models – the Escape and Explorer. A model redesign typically results in a sales volume decline as inventory of the outgoing model is sold out before the all-new replacement model is able to build stock.
Interestingly, three weeks ago, The Blue Oval debuted the new Ford Mustang Mach-E – an electric, four-door crossover inspired by the legendary Mustang. Set to go on sale in about a year, the vehicle represents the direction in which Ford is going as a company and where it’s taking its vehicle lineup. It also shows that Ford isn’t afraid to upend legendary nameplates. Initially, Ford stock didn’t improve in value, but the automaker sold out the introiductory Mustang Mach-E First Edition variant.
By comparison, shares of Ford’s cross-town rival – General Motors Company – decreased $0.46 per share, or 1 percent, during the December 2nd, 2019 – December 6th timeframe.
It will be interesting to see how Ford stock performs throughout the rest of 2019, especially in light of various actions by the Dearborn-based automaker to optimize its business by discontinuing all sedans to focus on more profitable crossovers, SUVs, and pickup trucks in the North American market, while at the same time investing in resource-intensive autonomous vehicle technologies like its Argo AI autonomous service as well as electric vehicles. Both initiatives have yet to result in a positive ROI for any automaker.
It’s worth noting that The Blue Oval started both efforts much later than its direct rivals. For instance, FCA was the first to discontinue most of its sedan portfolio and General Motors started to invest heavily into EVs and autonomous vehicles earlier than The Blue Oval. In July, company announced details of its partnership with Volkswagen that would result in VW investing in Ford’s Argo AI venture. Ford’s first modern electric vehicle will be the aforementioned Mustang Mach-E.