Ford Motor Company (NYSE:F) has temporarily stopped the deliveries of F-150 Lightning electric vehicles (EVs) for an undisclosed quality issue. The pause comes after the business recently said that it will be reducing the production of this battery-powered model due to the softening of EV demand.
Ford said that the shipments of the Lightning EVs were suspended on February 9. The company has not yet specified a timeframe for the resumption of deliveries. Meanwhile, the company has commenced deliveries of the newly designed gas-powered version of the 2024 model F-150 pickups to various dealers.
Factors Hurting EV Demand
Ford, along with other automakers, is experiencing a deceleration in the demand for EVs. Notably, persistently high-interest rates have dampened EV demand. Furthermore, intensified competition and aggressive price competition within the EV market have pressured profit margins, prompting companies to diversify their product portfolios to include gas and battery-powered vehicles.
In a bid to stimulate demand and bolster sales growth, Ford announced a price reduction for its 2023 Mustang Mach-E model last week. Additionally, in January, Ford revealed plans to scale back production of the F-150 Lightning to achieve a more optimal balance between production capacity, sales growth, and profitability.
Is Ford Stock Price a Good Buy?
Ford stock has remained flat over the past year. Further, analysts remain sidelined on Ford stock. It has received six Buy, seven Hold, and four Sell recommendations for a Hold consensus rating. Analysts’ average price target of $13.60 implies a limited upside potential of 12.03% from current levels.
