Ford Faces Challenges: Will It Rebound?

Summary:

  • Ford nears key support at $10.60; its RSI at 42.02 suggests it is oversold, while weak volume limits its short-term upside potential.
  • The UAW strike has caused significant production delays, further raising concerns about Ford’s near-term profitability.
  • Ford adjusted its EV strategy, increasing investments but lowering production targets due to demand and supply challenges.
  • Ford Pro remains a high-margin division, projected to generate $70 billion in revenue by the end of 2024.
Ford World Headquarters

TennesseePhotographer/iStock Editorial via Getty Images

Investment Thesis

In July, we held a hold rating on Ford (NYSE:F) due to rising ownership costs, decreased affordability, and supply chain disruptions. Since then, F has dropped 23% lower, as recent developments, including the UAW strike, have triggered several plant shutdowns, production delays, and increasing concerns about profitability.


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