The National Highway Traffic Safety Administration (NHTSA) is initiating a series of regulatory adjustments aimed at fostering the advancement of autonomous vehicles. Spearheaded by Tesla (TSLA) CEO, Elon Musk, these changes involve easing crash reporting obligations and simplifying the approval process for new innovations.
These regulatory revisions are part of a broader effort to elevate the United States' position in the global race against China in the development of electric vehicle technology, as indicated by US Transportation Secretary Sean Duffy. "Our new framework will slash red tape and move us closer to a single national standard that spurs innovation and prioritizes safety," he remarked, underscoring the critical importance of innovation in this sector.
While Tesla remains at the forefront of these efforts, numerous other companies are also active in the electric vehicle (EV) market. Among these are Ford (F, Financial), General Motors (GM), Rivian (RIVN), Lucid Motors (LCID), Nio (NIO), Xpeng (XPEV), Li Auto (LI), Nikola (NKLA), and Zeekr (ZK). The streamlined regulations are expected to benefit the entire industry by removing bureaucratic hurdles and accelerating the pace of technological advancements.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Ford Motor Co (F, Financial) is $9.34 with a high estimate of $14.00 and a low estimate of $7.00. The average target implies an downside of 7.15% from the current price of $10.06. More detailed estimate data can be found on the Ford Motor Co (F) Forecast page.
Based on the consensus recommendation from 27 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 $12.28, suggesting a upside of 22.07% from the current price of $10.06. 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.
F Key Business Developments
Release Date: February 05, 2025
- Global Revenue: $185 billion, an all-time record for Ford.
- Adjusted EBIT: $10.2 billion with a margin of 5.5%.
- Adjusted Free Cash Flow: $6.7 billion with a cash conversion rate of 65%.
- Cash and Liquidity: Over $28 billion in cash and close to $47 billion in liquidity.
- Dividend: Regular dividend of $0.15 per share plus a supplemental dividend of $0.15 per share.
- Ford Pro Revenue: $67 billion, up 15% with a 13.5% EBIT margin.
- Model e Cost Reductions: $1.4 billion in cost reductions.
- Ford Blue EBIT: $5.3 billion with a margin of 5.2%.
- Ford Credit Earnings Before Taxes: $1.7 billion.
- 2025 Adjusted EBIT Outlook: $7 billion to $8.5 billion.
- 2025 Adjusted Free Cash Flow Outlook: $3.5 billion to $4.5 billion.
- 2025 Capital Expenditures: $8 billion to $9 billion.
- 2025 Ford Pro EBIT Outlook: $7.5 billion to $8 billion.
- 2025 Ford Model e Loss Outlook: $5 billion to $5.5 billion.
- 2025 Ford Blue EBIT Outlook: $3.5 billion to $4 billion.
- 2025 Ford Credit EBT Outlook: About $2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ford Motor Co (F, Financial) achieved a record global revenue of $185 billion in 2024, marking the fourth consecutive year of top-line growth.
- The F-Series remains America's best-selling pickup and vehicle, contributing significantly to Ford's profitability.
- Ford Pro's revenue increased by 15% to $67 billion, with a strong performance in Super Duty chassis cabs and Transit wagons.
- Pro software subscriptions rose 27%, and telematics software grew 100%, indicating strong growth in recurring revenue streams.
- Ford's balance sheet is robust, with over $28 billion in cash and close to $47 billion in liquidity, providing strategic flexibility.
Negative Points
- Ford Motor Co (F) anticipates a challenging 2025 with adjusted EBIT guidance of $7 billion to $8.5 billion, reflecting potential headwinds from tariffs and policy changes.
- The company expects a breakeven adjusted EBIT in the first quarter of 2025 due to a significant reduction in wholesales and unfavorable mix.
- Ford Model e is projected to incur a loss of $5 billion to $5.5 billion in 2025, with continued industry pricing pressure impacting revenue.
- The EV market faces increased competition and pricing pressure, challenging Ford's profitability in this segment.
- Ford is experiencing pricing pressure in the fleet environment, particularly in daily rentals, which could impact Ford Pro's profitability.
