We know that legacy automaker Ford (F) has been paring back its electric vehicle ambitions in recent months, but this might be a paring back that goes farther than anyone expected. Between a general slowdown in electric vehicles, and a recent fire at Ford’s main aluminum supplier, there are some stirrings that Ford may shut down the F-150 Lightning altogether. The news sat oddly well with investors, though. Ford shares were up nearly 2% in Friday afternoon’s trading.
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Ford temporarily paused production on the electric pickup truck after that unexpected fire. But most expected the production lines to restart in January, sometime, when the supplier came back online fully. However, there are some signs that Ford may be considering keeping the production paused, potentially indefinitely.
The reason is simple enough: a comparative lack of demand. While the Lightning does make sales in at least some quantity, it does not produce much demand in general. Lester Glenn Auto Group owner Adam Kraushaar noted “The demand is just not there. We don’t order a lot of them because we don’t sell them.” And, as reports further noted, demand for full-size electric pickups seems to be tepid at best throughout multiple automakers, not just Ford.
A Big New Show
Meanwhile, Ford is the subject of an exciting new 4D immersive experience, reports note. Out in Los Angeles’ Arts District, a commercial building is home to an attraction described as “…like a cross between a museum and an amusement park attraction.” It is called “American Icon – Mustang Immersive Experience,” and it offers a historical perspective on one of Ford’s biggest names.
The attraction begins with a replicated version of the 1965 factory that put the first Mustang together, along with a cultural retrospective showing viewers what the world itself was like in a time when the Mustang made its appearance. The attraction follows up with a “motion-enhanced ride” that focuses on the Mustang as well.
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, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After an 18.23% rally in its share price over the past year, the average F price target of $12.14 per share implies 8% downside risk.
