In a significant potential shift in trade policy, President Trump is reportedly contemplating a delay or pause on proposed auto tariffs that would affect major U.S. automakers, including General Motors (GM), Ford Motor (F, Financial), Stellantis (STLA), and Tesla (TSLA), as well as foreign car manufacturers. These tariffs, initially set at a rate of 25%, are anticipated to be applied more heavily to finished vehicles rather than automotive parts.
Industry analysts at Wedbush suggest that such a focus on completed vehicles, as opposed to parts, would be advantageous for the industry. This approach could mitigate disruptions to the established global supply chains, which have been operating for decades. Wedbush argues that prioritizing tariffs on fully assembled cars produced in the United States represents a more strategic move, avoiding the complications associated with the auto parts tariff.
The implications of these proposed changes are substantial. A focus on finished cars may alleviate some pressures on the auto industry, which is still grappling with the complexities of supply chain management and production costs. This policy consideration by the administration could signal a more measured approach to handling trade relations with overseas car manufacturers and domestic automotive giants.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Ford Motor Co (F, Financial) is $9.55 with a high estimate of $15.50 and a low estimate of $7.00. The average target implies an downside of 1.68% from the current price of $9.71. More detailed estimate data can be found on the Ford Motor Co (F) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Ford Motor Co's (F, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ford Motor Co (F, Financial) in one year is $12.33, suggesting a upside of 26.98% from the current price of $9.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ford Motor Co (F) Summary page.
