The value of Ford stock significantly increased during the January 3rd, 2022 – January 7th, 2022 timeframe. Shares closed the week at $24.44, which represents an 18 percent jump, or $3.67 per share increase in value, compared to the prior week’s closing value of $20.77.
Movement & Ranges
By comparison, shares of Ford’s cross-town rival – General Motors Company – increased in value by $3.64 per share, or just over six percent, during the same timeframe.
The substantial jump in Ford share values during the week follows a modest three percent bump from last week, which in turn came after a similar two percent increase during the preceding five day trading period. The value of Ford stock has been steadily rising and remains notably higher than the $9.00 per share figure that closed out the first week of trading in 2021. The investment sector seems to be steadily warming up to The Blue Oval, as major financial institutions such as Barclays upgraded the rating of Ford stock earlier in 2021 due to the company’s ongoing pivot towards electrification. More recently, Credit Suisse performed a similar maneuver when it too upgraded its rating of Ford stock, with one analyst predicting that share value could reach $20 by 2023, a claim that actually came true in early November 2021. Currently, the value of Ford stock is at levels not seen since 2001.
There were several announcements about the 2022 Ford F-150 Lightning during the week. For starters, The Blue Oval intends to increase production of the upcoming all-electric pickup to 150,000 units per year by mid-2023, or nearly double its previous target. Additionally, the first order conversions took place during the week. The automaker also released its sales data for Q4 2021.
Ford CEO Jim Farley has been steadfastly outlining The Blue Oval’s future since assuming the role in October 2020. The company’s key goals and organizational changes include:
- An expansion and spinoff for Ford’s leading commercial vehicle business with a suite of software services that drive loyalty and recurring revenue streams.
- Offering compelling, uniquely Ford, fully electric vehicles at scale around the world, including the Ford Transit, Ford F-Series, Ford Mustang, SUVs, and Lincoln models.
- An alliance with German automaker Volkswagen.
- Adding more affordable vehicles to Ford’s global lineup, including in North America.
- Increasing the amount of money spent on EV development, to $30 billion through 2025.
- Having Ford Europe transition to zero-emissions vehicles by 2027 and switch completely over to full EVs by 2030.
- The launch of Ford Ion Park, a facility designed to facilitate R&D initiatives on battery production.
- An investment in Solid Power, a producer of solid-state batteries.
- BlueOvalSK, a joint venture between Ford and SK Innovation, Ford’s preferred supplier of EV batteries, which will bolster Ford’s EV manufacturing ambitions, specifically at two upcoming facilities expected to come online in 2025.
- Transforming Lincoln into a fully electrified luxury division by 2030.
- A partnership with Google that will transform the company’s manufacturing operations and see future Ford Motor Company vehicles sport Android-powered infotainment systems.
- Continued investments into EV startup Rivian.
- A shift to a build to order paradigm for retail customers.
- Buyout programs for employees involved in legacy ICE powertrain and platform development.
- Realigning markets according to what’s outlined in the Ford+ plan, which seeks cost reductions in underperforming regions such as South America and India.
- Supporting green initiatives with a comprehensive sustainable financing framework.
- Producing 600,000 EVs per year by 2024.
- Working with semiconductor manufacturer GlobalFoundries to secure additional microchips for its vehicles.
- Securing batteries from multiple companies wherever possible.
- Developing Ford Pro as a one-stop shop for commercial fleet management as it relates to fully electric work vehicles.
Ford’s fourth quarter 2021 U.S. sales decreased six percent to 508,451 units. Sales decreased at both Ford and Lincoln during that timeframe. For December 2021, U.S. sales dropped by 17 percent to 173,740 units.
Ford Stock Value Macro Factors – Products
Ford stock values surged considerably higher in mid-May after Ford officially revealed the 2022 Ford F-150 Lightning, the first all-electric F-Series pickup. Share values experienced further gains after that announcement too, and the debut of the 2022 Ford Maverick pickup undoubtedly delighted investors as well, which contributed to a solid growth period for Ford stock that that dipped before reaching twenty-year highs towards the tail end of 2021. The Maverick is currently in the middle of its initial rollout and sales have steadily increased each month it has been on the market. The Lightning launches in spring 2022.
The Bronco family is also steadily rolling out to dealers and both vehicles remain hot items. Ford sold over 100,000 units of the 2021 Ford Bronco Sport last year and just under 40,000 units of the 2021 Ford Bronco during the same timeframe.
Ford is also currently working on ramping up production of the Ford Mustang Mach-E – a four-door, crossover-like hatch inspired by the legendary Mustang pony car. More than anything else, the Mustang Mach-E demonstrates that Ford isn’t afraid to redefine legendary nameplates, and recreate them in new body styles and as new vehicle types.
Production of the Mach-E kicked off in late October 2020, and the model has since found a following within its home market, although sales are held back due to production constraints. Ford delivered its first three examples in December 2020 and 6,614 units in Q1 2021. Since then, the electric crossover has made steady inroads into the Scandinavian EV market, and recently became Norway’s best-selling vehicle in May and July . Automotive outlets and industry experts praised the EV for its good looks, engaging driving dynamics, upscale interior, and clever engineering. Additionally, preliminary reports suggest that the vehicle is already eating into Tesla’s market share, which would be a significant achievement, especially when considering the relatively short amount of time the Mach-E has been on the market. In June, the Mustang Mach-E outsold its gasoline-powered counterpart for the first time. The Mustang Mach-E notched another victory for itself in early July, when Car And Driver named the crossover its 2021 EV of the Year. It also is the most considered compact SUV in the 2021 J.D. Power APEAL study and is currently being considered for police duty in the U.S. and the U.K. The Chinese rollout officially began in late October 2021, when the first domestically produced Mach-E rolled off the assembly line. Ford plans to deliver 50,000 examples to customers by 2022 while the buyers who already received their vehicles are highly satisfied with their purchases.
The 2021 Ford Mustang Mach-E represents one part of a four-pronged blade Ford hopes will increase its North American market share this year and beyond, as the company has essentially fully transitioned away from sedans and passenger vehicles towards utility vehicles, trucks, and electrified models. That said, all of the aforementioned models have a significant amount of potential to resonate with car shoppers, and their reception will almost certainly impact the value of Ford stock in the coming months, provided the company can build a steady supply of them.
Ford Stock Macro Factors – Events
The Blue Oval has been disproportionately impacted by the ongoing chip shortage, which the company previously stated would reduce Q2 2021 output by a staggering 50 percent. Unfortunately, the shutdowns have spilled over into the beginning of the third quarter too, as virtually every North American assembly plant shut down for two weeks or more through July 2021. Ford expects to take a $1 billion to $2.5 billion hit to its bottom line as a direct result of the shortage and currently has about 70,000 incomplete vehicles in need of chips sitting at lots throughout North America, which will no doubt lead to further financial hits to the company’s bottom line if it cannot fully assembly its stock in an acceptable timeframe.
Outside of North America, Ford faces substantial challenges. India and South America continue to take a heavy toll on the company’s financial well-being. Ford Credit is currently winding down operations in both regions, and the automaker has been forced to spend a considerable amount of cash in South America as it begins to shutter several of its assembly plants in Brazil. Ford officially announced its intention to shutter two assembly plants in India in September 2021 after noting that it had lost $2 billion in the country over the past 10 years.
Ford Stock Value Micro Factors
There have been several high-profile personnel changes at Ford recently. The company has added Steven Crowley and Jon Huntsman, two former political operatives, to its executive roster, and both individuals will be instrumental in tweaking the company’s relationship with the federal government going forward. There has been one major departure from the automaker as well, with Ken Washington recently announcing his intention to work for online retailer Amazon. However, Ford recently poached an Amazon executive away from the company, in an interesting turn of events. Another recent personnel involved the hiring of Doug Power, who has been named vice president of corporate development, a newly created position.
Stock Performance Year-To-Date
Ford share values have increased significantly since the first day of trading in January 2021, soaring 187 percent, or $15.92 per share, as of this writing. The gains arrived unsteadily through 2021 but increased substantially through Q4.