Amid the cacophony of the automotive market, Ford (NYSE:F) shines as a star, celebrating a remarkable 11.2% leap in U.S. vehicle sales in May, totaling a grandiose 190,014 vehicles. This feather in Ford’s cap was largely earned by the soaring demand for its all-electric and hybrid models. The automaker flaunted a whopping 65% surge in sales for its hybrid and all-electric vehicles, amounting to 26,600 vehicles in May. Meanwhile, the traditional vehicles, powered by internal combustion engines (ICE), experienced a commendable 5.6% increase, pushing sales to 163,417 vehicles.
Zooming out to assess the bigger picture, Ford’s U.S. sales for the year up to May escalated by 5.6% year-on-year to a commendable 877,685 units. This spike was underpinned by a double-digit 10% surge in SUV sales coupled with a respectable 2.5% uptick in truck and van sales.
Electrifying Success: Ford’s EV Sales Story
While the prowess of Ford’s electric vehicle (EV) sales glows undeniably bright, a dark cloud looms over its Model E electric vehicle unit, bearing the weight of substantial losses. Nevertheless, Ford remains unwavering in its commitment to bolstering the sales of its EV fleet, despite the tightening grip of fuel economy standards and stringent emissions regulations.
In a stark revelation, Ford’s EV division reported a staggering $1.32 billion loss in the first quarter. Delving deeper, this figure unveils that for every EV sold, Ford is bleeding $132,000. An intriguing narrative unfolds as Ford’s EV arm managed to sell 10,000 vehicles in Q1 alone, thereby accounting for the colossal loss of $1.32 billion (10,000 EVs x -$132,000 per EV = $1.32 billion).
In the buoyant month of May, Ford witnessed a near-doubling of sales for its all-electric F-150 Lightning pickups, reaching 3,260 units. Additionally, the Mustang Mach-E EV also joined the festivities, boasting a splendid 46% year-over-year surge with 4,255 vehicles finding new owners.
Investor Insight: The Ford Stock Analysis
Expert analysts tread cautiously along the winds of optimism when considering Ford’s stock, presenting a Moderate Buy consensus rating based on seven Buys, five Holds, and one Sell among their ranks. Over the last year, Ford has seen a moderate 2.5% increment, with the average price target resting comfortably at $15.25, signaling a buoyant upside potential of 25.9% from current levels.
