TLDR
- Jim Cramer says Ford is “too tough to recommend” due to ongoing warranty issues despite stock performing well
- Ford may revive the classic “Ranchero” name for a new electric pickup truck based on recent patent filing
- The patent was filed just days before Ford’s “Model T Moment” electric vehicle event scheduled for next week
- Wall Street analysts maintain a Hold rating on Ford stock with average price target suggesting 7.36% downside
- Investors are seeking value-priced electric vehicles as inflation concerns continue to impact households
Ford Motor Company shares slipped in Thursday afternoon trading as new patent filings hint at the possible return of a classic nameplate. The automaker may bring back the Ranchero name for its upcoming electric pickup truck lineup.
Jim Cramer recently addressed Ford’s current position during his show. A caller asked about the stock given recent recalls and rising raw material costs.
“The stock acts better despite that bad news, which I like,” Cramer said. “However, I will have to say that if they don’t get that warranty stuff down, it is just too tough to recommend.”
The warranty issues continue to weigh on investor sentiment. Ford has faced multiple recalls and quality concerns that have pressured margins and damaged consumer confidence.
Despite these challenges, Cramer sees potential upside from trade policy changes. He believes auto tariffs could benefit Ford more than competitors due to higher domestic content in their vehicles.
“Ford is the biggest winner because its cars and trucks have the most content made in the US, even more than General Motors,” Cramer explained during a July episode.
Patent Filing Revives Classic Name
Ford filed a patent two days ago that could signal the return of the Ranchero nameplate. The original Ranchero was a “coupe utility” vehicle that ran from the late 1950s through the 1970s.
The new patent covers “motor vehicles, specifically trucks, vans, utility vehicles, and electric cars.” Details remain limited about the specific vehicle design or features.
The timing appears strategic. Ford’s “Model T Moment” electric vehicle event is scheduled for early next week, just six days after the patent filing.
Some initially speculated the event would reveal an electric Ford Ranger. The Ranchero patent filing adds another possibility to the mix.
Ford has previously revived classic names for electric vehicles in Europe. The Puma, Explorer, and Capri all have electric versions available overseas.
Market Seeks Value in Electric Vehicles
Consumer demand appears focused on affordability rather than premium features. Inflation has pressured household budgets for years while vehicle prices have climbed substantially.
The original Model T sold for around $600, equivalent to roughly $11,700 in today’s money. Modern vehicle prices rarely approach that level outside used car lots.
A value-priced electric vehicle platform could attract cost-conscious buyers. Ford’s upcoming announcement may address this market segment directly.
The electric vehicle market has seen mixed results recently. Some consumers remain hesitant about electric vehicle adoption due to charging infrastructure and price concerns.
Ford’s approach to the electric truck market will compete with established players like Tesla and newer entrants. The company needs to differentiate on price, features, or brand recognition.
Wall Street analysts maintain a cautious stance on Ford shares. The consensus rating remains at Hold based on recent analyst updates.
Two analysts recommend buying Ford stock while 10 suggest holding current positions. Three analysts rate the stock as a sell.
The average price target sits at $10.39 per share. This represents 7.36% downside risk from current trading levels.
Ford shares have gained 10.66% over the past year despite ongoing operational challenges. The stock continues to face headwinds from warranty costs and competitive pressures.
The company’s “Model T Moment” event next week may provide clarity on electric vehicle strategy and the potential Ranchero revival.
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