Legacy automaker Ford (F) has made some interesting moves in the past as far as its electric vehicle lineup goes. But the latest move is both a particularly noteworthy idea and a problem for shareholders. It is a new connection between Ford and the very power grid that keeps its electric vehicles running. The move did not sit well with investors, though, who sent shares sliding modestly in Tuesday afternoon’s trading.
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The new move is called the Home Power Management system, a system that basically lets an F-150 Lightning serve as a huge, whole-house battery. The truck plugs into a Ford Charging Station Pro, which is typically mounted somewhere outside, probably not far from a fuse box where power enters a building to begin with. And when the power goes out, the whole thing functions as a “mid,” or a micro grid interface device. This disconnects the house from the larger grid and instead treats the truck battery as a power plant.
The truck is generally sufficient to run a whole house’s power needs for about three days, reports note. That in turn is usually enough time to outlast most power outages that might happen in Michigan. But the system does not have to only work during blackouts; it can also be used to trim power usage during peak hours. By substituting truck power for grid power during peak hours, homeowners can save money on their electric bills. Estimates put the cash savings at around $500 per year.
Bronco Hitting China
Meanwhile, Ford stepped up plans to bring its electric Bronco to China, looking to fire up a potential comeback in the major market region. The Bronco will go live before the end of the year, but will only be available in China, reports note. There is a wide range of electric vehicles available in China, so Ford will need to bring something particularly special to compete therein.
Ford could certainly use a comeback in China. Back in 2016, its electric vehicle sales therein were on a tear, selling 1.27 million vehicles and setting a record. But, almost 10 years later, sales have been in open decline. Yet, modified marketing efforts have given Ford new life in China, as the “Ford China 2.0” plan seems to be turning things around. When Ford will bring the electric Bronco to the United States, meanwhile, is unclear at best.
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 27.38% rally in its share price over the past year, the average F price target of $12.06 per share implies 8.32% downside risk.
