FORD-A legacy forever

Ford Motor Company was founded by Henry Ford in Detroit on June 16,1903 with seed funding from the Dodge Brothers, another competing automobile brand.The invention of the assembly line system and the provision of cheap reliable cars to the masses were the defining characteristics of Ford’s success.Following this,Ford went public in 1956 with 10.2 million shares worth around 30 billion USD (inflation adjusted) which is the largest common stock offering till date.

Ford currently trades at 13-15.2$ with a market cap of 55B $ and a PE ratio of 16.10. Ford is currently recovering from the pandemic hit and has good rise potential under new management with CEO Jim Farley.Ford recently exited the Indian market as a loss cutting strategy and has also announced that they will be ceasing production of their family lineups as part of their efficiency maximisation theory.

One year stock predictions are of 16-18$ owing to the expected loss cutting strategies and the launching of the new EV platform.Strong bullish sentiments rise amongst the market participants with experts prediction with median estimate representing a 23.4% increase in stock prices.

Although Ford ideas do sound well on paper the actual implementation might disturb public sentiment.Ford is making revolutionary changes and despite being late to the electrification game is going good with the relaunching of the Bronco line of SUVs and the Mustang Mach E which has mixed feelings amongst the automotive scene.Ford faces many difficulties such as the shortage of Micro Chips for their cars and dropping sales all around the world in the pandemic stricken society.Aging car fleets in the USA and the securing of police vehicle contracts may allow short term profitability for the company.The age old customer relations and long presence in the automotive industry is surely the greatest asset Ford has for its long term plans.Investments in many previous mobility companies such as Rivian might pay off and create significant changes to the Ford balance sheets and acquisition of new technology would finally allow complete electrification of the most selling Ford vehicle the F150.