Ford Drops Below $10

By Douglas A. McIntyre Published Dec 21, 8:03AM EST

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Ford Drops Below $10 — © Ford Bronco (6th generation) (CC BY-SA 4.0) by Alexander-93

After trading above $10 most days since the start of 2021, Ford (NYSE: F | F Price Prediction) dropped below that level on worries about inventory, overseas sales, EV cost structure, and warranty costs. During that period, the stock peaked above $25 in early 2022.

The warranty and EV problems needed to be resolved when Jim Farley was made CEO in October 2020. Ford planned to invest $30 billion in its EV business and launched two flagships. These were the Mustang Mach-E crossover and the F-150 Lightning. The gas-powered F-150 is the best-selling car or light truck in the US.

Ford planned to make EVs at the rate of 600,000 a year by the end of 2023. It then pushed that to 2024. Ford backed away from those plans entirely. Its EV sales are a small fraction of its total monthly US sales.

Ford’s quality problems have plagued it for years. Earnings have been hit by hundreds of millions of dollars this year because of warranty charges.

Like many other legacy car makers, Ford’s business has been decimated in China, the world’s largest car market. Foreign car makers had 53% of the Chinese markets in July 2022. That dropped to 33% in July this year. In July, Bank of America suggested that Ford and General Motors (NYSE: GM) leave China entirely.

Jeffries recently moved Ford from “hold” to “underperform.” It moved its price target down from $12 to $9. It already looks like the change was a smart one.

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.