I admit, I was getting complacent. It had been quite a while since we last heard about a recall in connection with legacy automaker Ford (F). But the streak is still alive, and Ford has new product expenses to consider as potential engine fires come with this recall. Ford investors, meanwhile, took it in stride, sending shares down only fractionally in Thursday afternoon’s trading.
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This recall addresses 59,006 vehicles that have engine block heaters, which can be vital in areas that have a lot of cold weather. However, the problem here is that the engine block heaters can crack, and if that happens, a coolant leak may follow. A coolant leak may lead to a short circuit, and when you couple short circuit and leaking coolant…that is where the risk of an engine fire comes in.
Several models were on the list, though apparently, not many models within each list. The Lincoln MKC is on the list, as are Ford Bronco Sport, Explorer, Fusion, and Maverick models. There have been no accidents or injuries related to the recall as yet, so the matter may have been caught sufficiently early to step in and fix it. No word is available yet as to how repairs will be taken care of, but it is a safe bet that the dealerships will once again be at the tip of that spear.
The Unexpected Win
However, as it turns out, Ford is having a field day in a field that it only recently entered: electric trucks. While the Ford F-150 Lightning never did as well as expected—Ford freely admits it overestimated the market size—it is still doing a number against many competitors.
It turns out that Ford had the best-selling electric pickup for the third quarter, with Ford selling 10,005 units total. That is a far cry from the planned 150,000 annual units Ford meant to sell, but it was still enough for Ford to land the best-selling title for the quarter. By way of comparison, the Tesla (TSLA) Cybertruck could only sell 5,385 units, and the Rivian (RIVN) R1T could only coax 2,378 buyers into the fold.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 10 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.23% rally in its share price over the past year, the average F price target of $11.41 per share implies 2.44% downside risk.
