Ford Motor Company’s (F) shares are taking a hit on Thursday as news of a production pause for the F-150 Lightning electric pickup truck ripples through the market. According to Automotive News, Ford will be halting production of the F-150 Lightning from mid-November until the end of the year due to weaker-than-expected demand. This pause, which includes the planned holiday downtime in December, will see production at Ford’s Rouge Electric Vehicle Center in suburban Detroit come to a standstill starting November 18th.
While Ford has managed to sell 22,807 units of the F-150 Lightning in the first nine months of 2024, the company’s electric vehicle ambitions seem to be facing headwinds. In August, Ford announced it would scrap plans for a three-row electric SUV and delay the launch of an electric version of its top-selling F-150 pickup.
Despite the higher sales figures in 2024, Ford’s F-150 EV is not yet a money-maker. Reports suggest that Ford is offering dealers up to $1,500 for each 2024 F-150 Lightning they order from new EV distribution centers. This move indicates the company is seeking to stimulate demand for the electric pickup.
The production pause and adjustments in Ford’s electric vehicle strategy have taken a toll on the company’s stock. Benzinga Pro reports that F stock has lost over 15.42% year-to-date.
For investors looking to gain exposure to Ford, the First Trust Nasdaq Transportation ETF (FTXR) and the WBI Power Factor High Dividend ETF (WBIY) offer opportunities.
Is Ford Motor a Good Stock to Buy?
When deciding whether a stock is a good buy, investors should consider various factors beyond valuation metrics and price action. Factors like dividend payouts and share buyback programs provide valuable insights into a company’s financial health and commitment to shareholder value.
Ford Motor does pay a dividend, currently yielding 4.89% per year as of the closing price on October 31, 2024. This dividend can be a source of attractive income for investors.
Additionally, investors should keep an eye on buyback programs, which often serve as a support for share prices. Researching recent news on Ford Motor can reveal whether or not the company has recently approved a buyback program.
Price Action:
As of Thursday’s last check, F shares were down 1.67% at $10.30.
The production halt and the resulting stock performance highlight the challenges and uncertainties facing Ford as it navigates the transition to electric vehicles. While the company’s dividend and potential buyback programs offer some investor appeal, investors will be closely watching Ford’s future moves in the electric vehicle market.
