New F-150 a fresh driver for shares: Ford’s Jim Farley
Are investors missing Ford's true investment value?
Ford’s F-150, the automaker's best-selling truck, is getting some hot upgrades for 2021 that could be a key driver for investors who own the stock, which has dropped over 35 percent this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.50 | +0.07 | +0.56% |
Ford Chief Operating Officer Jim Farley told FOX Business the enhanced truck and some of the automaker’s other new initiatives are not reflected in the true value of the company’s $25 billion market cap.
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“No, not fully. And that doesn’t include also our Transit business," he said. "Globally, you know, we’re one of the leaders in the van business in Europe and the U.S. and China. So we certainly have upside in value creation. And we think the electrification, future-proofing this business, is going to be a really important part of our value creation.”
The cabin is completely redesigned. Shown here is the interior of the all-new F-150 Limited.
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The F-Series, according to Morgan Stanley, accounts for nearly 90 percent of Ford’s profits. Although Farley declined to confirm that figure, he did stress that the brand is one of the company’s crown jewels.
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“F-Series and our whole commercial lineup, including Transit, is really a key part of what makes Ford different as an investment thesis," Farley said. "I mean, when you look at Ford Motor Company, what makes us different is iconic nameplates like Mustang, the Bronco we’re bringing back, but also our whole commercial lineup. It’s where we’re strong, where we’re different.”
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Farley also noted that the commercial business is picking up and is a fresh priority for capital.
"We’re going to allocate more and more of our capital. In fact, we now have a dedicated business unit lead for commercial business now in the U.S. and North America. We never did that before," he disclosed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 45.06 | +0.20 | +0.45% |
| TSLA | TESLA INC. | 184.76 | +3.57 | +1.97% |
| NKLA | NIKOLA CORP. | 0.64 | -0.02 | -3.06% |
The residential and commercial truck market is heating up as General Motors, Tesla and newcomer Nikola are all gunning for a piece of the F-150's market share.
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