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Why Ford Is A Great Long-Term Investment

By Michele SchneiderStock MarketsSep 08, 2022 04:42AM ET
www.investing.com/analysis/why-ford-is-a-great-longterm-investment-200629533
Why Ford Is A Great Long-Term Investment
By Michele Schneider   |  Sep 08, 2022 04:42AM ET
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The Biden administration declared an intermediate target in August 2021 that 50% of all new automobiles would be electrified by 2030.

This transition to lithium-ion battery power will potentially guard against climate change and counter China's aggressive push into the global EV automobile market.

Ford Motors Daily Chart
Ford Motors Daily Chart

Electric car efforts are being developed by Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Sony (NYSE:SONY), to mention only a few.

EVs have reached a tipping point globally and in the United States. 

Ford (NYSE:F) is moving forward toward EVs and fast. Ford is undergoing a major brand makeover to convert its classic iconic models while also guiding the American public to understand the economic value of switching to electric and hybrid vehicles.

The American automaker has been making EV models such as the Mustang Mach-e, which sold 25,000 vehicles within two years. In August, Mach-e sales reached 3,120, 115% more than August 2021 and clearly trending in the right direction.

Recently, Ford released their newest truck model - the F150 Lightning EV. The truck's battery lasts up to 120 miles on one charge, is fully capable of off-roading, and is comparable in towing capacities. The hybrid version, the F-150 PowerBoost hybrid, is also versatile.

It is hard to overlook how many new partnerships between Ford and battery developers have had on their urgency in producing more electric vehicles. This includes recent deals with SK Innovation, CATL Ltd., and others.

To highlight one of its "megadeals," in September 2021, Ford inked an $11.4 billion contract for "mega-sites" to produce electric vehicles and batteries in Tennessee and Kentucky and to add 11,000 jobs in the process.

On the other side of the world, the sales of electric vehicles are growing exponentially in China, with all segments of the Chinese car market by vehicle size, from the smallest to the most expensive, adopting EVs. China's electric vehicle (EV) industry is the biggest in the world and is predicted to remain the biggest.

Yet, Ford has a track record of success that dates back more than a century. Ford’s market cap is 62 billion USD, with a wide range of EV products.

Ford is attempting to capitalize on this megatrend like Tesla (NASDAQ:TSLA) and China already have with TSLA’s current market cap of 879 billion USD.

Ford's share price year to date is down -29.12% and at 15.44 above seems to be a rock-solid price for playing this EV megatrend.

ETF Summary

(S&P 500)  (SPY390 now support 400 resistance

Russell 2000 (IWM) Held 177 and 185 next big resistance

Dow (DIA310 support and 320 resistance

Nasdaq (QQQ) 297 support to hold with 303 next resistance

KRE (Regional Banks) 60-63 range to break

SMH (Semiconductors) Still weakest-needs to hold 204 clear 217

IYT (Transportation) IYT did its job crossing the 50-DMA now needs to hold it

IBB (Biotechnology) 125 resistance 119 support

XRT (Retail) Clutch hold of 62. Thru 65.00 better

Why Ford Is A Great Long-Term Investment
 

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Why Ford Is A Great Long-Term Investment

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Comments (4)
Roshan Shanbhag
Roshan Shanbhag Sep 09, 2022 3:10PM ET
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All the major car manufacturershave an EV carvin their portfolio. Fird is a fairly new player. To exceed , one needs to come up with cutting edge technology with respect to efficiency.
Roshan Shanbhag
Roshan Shanbhag Sep 09, 2022 3:10PM ET
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All the major car manufacturershave an EV carvin their portfolio. Fird is a fairly new player. To exceed , one needs to come up with cutting edge technology with respect to efficiency.
Fernando Saldanha
Fernando Saldanha Sep 09, 2022 1:59AM ET
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3 thousand Mach-e in August? Is this supposed to be good news?
jason xx
jason xx Sep 08, 2022 5:22AM ET
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F was a great long term investment at 11 a couple months ago
 
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