Sometimes a weekend is all it takes to fundamentally change things around. This was the case for legacy automaker Ford (F), who saw the market go from “don’t you dare raise prices” to having price hikes post-tariff back on the table, according to some reports. And that word sent Ford shares on an upward tear, gaining over 3% in Monday afternoon’s trading.
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Earlier reports suggest that the White House would “…look unfavorably on such a move, leaving some of them rattled and worried they would face punishment if they increased prices. President Trump took to NBC News to offer up some clarity on that, noting “No, I never said that. I couldn’t care less if they raise prices, because people are going to start buying American-made cars.” Trump then declared that he “…couldn’t care less” twice more, making it clear that prices would go up on foreign cars, making even slightly pricier American cars a bargain by comparison.
It was perhaps that last part that made some concerned: “American-made cars.” Many cars are actually made outside of the United States in some fashion or other; parts come from other countries, or other countries assemble certain parts. And how that impacts tariffs, and prices from there, is a bit less clear.
Recalls and Marketing
In what perhaps will be the least surprising news, regardless of prices, Ford is facing another recall effort, this time over a potential fuel leak in its 1.5 liter engines. This includes Bronco Sports models made between 2021 and 2023, as well as Escapes from 2020 to 2022. Required repairs will be made at no charge, as usual.
Finally, Ford also made a move in favor of both marketing and the status quo. It extended its naming rights partnership with the Detroit Lions and Ford Field, which has been home of the Lions since 2002. That makes it the second longest naming rights partnership in NFL history, reports note. When the Lions moved back to downtown Detroit, reports note, Ford was there to help. Thus, Ford Field remaining Ford Field is a sign of confidence in the team and the city, which should help Ford’s local image.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, 10 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 18.58% loss in its share price over the past year, the average F price target of $10.46 per share implies 4.03% upside potential.
