Ford Motor is planning to make battery cells for its electric vehicles (EVs), Reuters reported. Shares of the automaker closed 4% higher on Friday.
At the Reuters Automotive Summit teleconference, Ford’s (F) CEO Jim Farley said “We are discussing (battery) cell manufacturing.” He further added that “I think that’s natural as (EV) volume grows.” Until recently, the company did not see any advantage in making its own battery cells, according to the report.
Last week, Ford unveiled its first fully electric cargo van for $45,000, which would help it to become carbon-emissions-free by 2050. The carmaker plans to launch its fully-electric Mustang Mach-E this year. Further, its all-electric F150 are expected hit the dealers in mid-2022. (See F stock analysis on TipRanks)
On Nov. 3, Jefferies analyst Philippe Houchois lifted the stock’s price target to $9.50 (11.2% upside potential) from $8.50 and maintained a Buy rating. The analyst said that the new CEO Jim Farley and CFO John Lawler have “so far provided a refreshingly clear and direct message,” and he sees significant improvement in product contribution from upcoming launches and key replacements.
Meanwhile, unlike Houchois, the rest of the Street is sidelined on the stock. The Hold analyst consensus is based on 8 Holds, 4 Buys and 1 Sell. The average price target stands at $8.84 implying upside potential of about 3.5% to current levels. Shares have declined by about 8.2% year-to-date.
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