Ford (NYSE:F) is lowering the price of its Mustang Mach-E electric vehicle for the second time in 2023 while reopening orders for the same. The company’s 8% price cut comes in response to Tesla (TSLA) lowering the cost of its vehicles on multiple occasions this year.
The automaker is enhancing its electric crossover SUV by extending the range of battery models with standard range. These models are likely to be powered by lithium-iron phosphate batteries. At the same time, Ford aims to reduce the production cost of the Mach-E by about $5,000 in order to be more competitive with its rivals.
It is important to note that the company upgraded its plant in order to increase the production of the vehicle in the second half of 2023. This resulted in lower Mach-E production in the first quarter, leading to a year-over-year decline in sales.
Furthermore, the company’s Ford Model E segment, dedicated to developing electric vehicles, delivered a loss of $722 million in the quarter. Overall, the company reported better-than-expected Q1 results yesterday, driven by higher sales of its gasoline-powered cars and trucks.
Is Ford a Buy, Sell, or Hold?
The company’s bullish plans for the EV market are encouraging. It aims to produce over 2 million EVs annually by 2026 and introduce 30 new EV models globally by mid-decade. Moreover, the stock’s attractive dividend yield of 10.1% remains another positive factor. Nevertheless, rising expenses continue to hurt the company’s profit margins.
Turning to Wall Street, Ford stock has a Hold consensus rating based on five Buy, five Hold, and three Sell ratings. The average F stock price target is $13.77, implying 16.7% upside potential.
