Ford is betting big on electrification, unveiling a $5 billion investment to revamp production facilities and launch a new Universal EV Platform. The automaker plans to introduce an electric pickup priced aggressively at $30,000, aiming to challenge Tesla’s dominance in the segment. Analysts note the strategy could mark a turning point for Ford’s struggling stock, with one major bank maintaining a buy rating and a $14 price target. The Kentucky plant will receive $2 billion to produce the new pickup by 2027, securing 4,000 jobs. However, skepticism persists due to recent recalls affecting over 100,000 vehicles and tariff-related headwinds costing $2 billion annually.
Mixed Analyst Sentiment Amid Strategic Shift
While some analysts upgraded Ford’s price targets, others retained cautious ratings, citing overvaluation concerns. The EV division, Model E, is projected to reduce losses by 2026, supported by cost-cutting and streamlined operations. Investors await a pivotal strategy update in August, which could clarify Ford’s path to profitability in the competitive EV market. Despite a 6.6% dividend yield, questions linger over whether the massive investments will position Ford as a true Tesla rival.