tiprankstipranks
Market News

Ford Outshines Industry in Vehicle Deliveries

Story Highlights

Ford has surprised everyone with its June U.S. sales figures. The automaker outperformed the overall automobile market, as its sales improved 31.5% year-over-year despite semiconductor chip and supply chain issues.

Ford Motor Co. (NYSE: F) has reported outstanding U.S. sales figures for the month of June. Total sales increased 31.5% year-over-year to 152,262 vehicles, while sales of the overall auto industry dipped 11% because of semiconductor chip and supply chain constraints.

Andrew Frick, the Vice-President of Sales, Distribution & Trucks at Ford Blue, said, “Amid industry-wide supply constraints, Ford outperformed the industry driven by strong F-Series, Explorer and new Expedition and Navigator SUV sales. Combined, these vehicles represented just over 56% of our sales in June – up about eight percentage points from May.

“F-150 Lightning was America’s best-selling electric truck in June in its first full month of sales, while our overall electric vehicle sales were up 77% over last year,” Frick said.

Total truck sales jumped 26.4% year-over-year to 79,823 units and total SUV sales climbed 36.1% to 67,788 units.

Ford’s average transaction price rose around $1,900 per vehicle month-on-month, compared to an industry increase of about $150.

Recent Recalls

Recently, Ford recalled more than 26,000 electric F-150 vehicles for the model year (MY) 2022. These EVs were assembled at the Rouge Electrical Vehicle Center in Dearborn, Michigan.

The recalled vehicles failed to warn the driver of low tire pressure, due to a defect in the tire pressure monitoring system (TPMS). This increases the risk of a crash as the driver can lose control of the vehicle.

Additionally, the Michigan-based automaker has recalled 63,294 units of MY2022 Ranger and Bronco SUVs in the U.S., due to an issue with the windshield. The recall, which includes 24,231 Rangers and 39,063 Broncos, has been issued on the back of insufficient adhesion of urethane around the windshield glass. This could result in the falling of the glass panel in the event of a crash, increased water leaks, or wind noise.

Stock Rating

Based on seven Buys, nine Holds and one Sell, the stock has a Moderate Buy consensus rating. Ford’s average price target of $18.81 implies 68% upside potential from current levels. Shares have lost 53.7% over the past six months.

Bloggers’ Sentiment

TipRanks data shows that financial bloggers are 89% Bullish on Ford, compared to the sector average of 66%.

Conclusion

The June U.S. sales numbers come as a major relief for investors, who have been on the edge following a 21.5% decline in F stock price over the past year and an almost 48% fall year-to-date. All eyes now are on the company’s second-quarter results, which are scheduled to be released after the market closes on July 27. The Street anticipates Ford to report earnings of $0.43 per share, compared to $0.13 in the second quarter of last year.

Read full Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More