Ford’s (F) management cannot get out of its way. The firm sustained its investments in electric vehicles. It is primarily maximizing tax breaks and subsidies. This strategy will cost it billions in the decade ahead.
Ford’s revenue benefited from the sale of gas-powered vehicles, particularly trucks. But the supply chain disruption is nearing an end. The shortage of new vehicles is coming to an end. The supply of used vehicles is rising. In the U.S., the latest CPI report indicated used car prices falling sharply.
Ford will need to react to the weak automotive markets by cutting prices. Its EVs, particularly the Lightning truck and Mach-E EV, will lose more money per unit sold. Profits from ICE sales will shrink. An unexpected quarterly loss would spook income investors.
Trading Range
Ford stock trades in a highly predictable pattern. Since breaking out in 2021, and except for a rally to over $23, shares traded in a range. Traders could maximize profits by buying the stock at around $11.50 and selling at between $13.50 to $15.00. After peaking again at over $15.50, patient traders may wait for the selling to end.
Once shares fall at around $13.50, the stock is a potential buy for a rebound trade.
