Ford Shares Surge Ahead of Rival

By Douglas A. McIntyre Published Aug 10, 7:30AM EDT

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Ford Shares Surge Ahead of Rival — © gopixa / iStock Editorial via Getty Images

Good news beat out bad news for Ford Motor Co. (NYSE: F | F Price Prediction) over the past several weeks. Shares of Ford are up by 31%, while General Motors shares have moved higher by only 14%. In a choppy market, Ford’s performance is noteworthy.
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The primary headwind for Ford was an article in The Wall Street Journal that brutally attacked Ford’s quality record. This was highlighted by recall and warranty data. It also reviewed what Ford has done to address the problem and that no short-term solution is available.
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On the positive side, Ford posted extraordinary July sales. U.S. sales rose 36.6% to 163,492. Most other car companies had trouble improving sales last month.

Investors continue to be willing to believe, in great numbers, that Ford will be a winner in the electric vehicle (EV) market. The Ford F-150 has been the best-selling vehicle in America for four decades. The new F-150 Lightning has a ready market of millions of current F-150 owners. Ford management has made a gamble that many of these will roll into an electric version. (Though, Ford has just increased its price, which could undermine sales.) Notably, GM does not have an installed base of any one single vehicle that is close to comparable.
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The theory that Ford will do well in the EV market was given support when electric car subscriber company Autonomy said it would order 1,800 Fords. That puts it behind only Tesla, GM and Volkswagen in terms of units ordered. These cars will not be in the market immediately. According to Bloomberg, “Some deliveries won’t begin until the fourth quarter or early 2023, according to Scott Painter, Autonomy’s founder and chief executive officer.”
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Ford’s shares still have a long way to climb to return to their recent high. Shares trade at $15.21, against a 52-week high of $25.87.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.