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After closing on Friday with a profit of 11.72%, Ford stock is up 4% now. The rally is attributed to the launch of four key vehicle models: 202 F-150, Mustang Mach-E, Bronco Sport SUVs and Bronco.
American multinational automaker, Ford Motor Company (NYSE: F) is recovering steadily from the coronavirus market disruption that saw its supply chain significantly suffer. As a result of the lockdown in most parts of the world due to the COVID-19, its stock fell 21.08% year-to-date and over 25% in the past one year. However, in the past three months, the shares have largely recovered from the black Thursday free fall.
At the time of writing, Ford (F) stock is nearly 4% up, at $7.65.
In the past month, investors in the automakers have seen their portfolios rise by 43.36%. The continued rise is attributed to different activities the company has engaged in during the COVID-19 market crisis including taking part in building ventilators to assist coronavirus patient’s breath.
The stock trade volume spiked on Friday, June 5, with the volatility increasing over the weekend in the after trade hours. Having broken beyond the resistance level at 7, the next hurdle lies at around 8 in the short time frame and also in the weekly timeframe.
The company lags behind other renowned automakers in terms of the market venture and also capitalization. At the time of reporting, the company is reported to have a market cap of around $29.19 billion. To put matters into perspective, Toyota Motor Corp (TYO: 7203) has a market cap of $178.13 billion, Tesla Inc (NASDAQ: TSLA) follows closely with $164.27 billion, General Motors Company (NYSE: GM) holds at $43.81 billion and Honda Motor Co Ltd (TYO: 7267) has a market cap of $47.61 billion.
Ford Motor Stock Fundamentals
As the Ford stock race to set a new all-time high, the company is facing huge challenges even after launching four key vehicle models, which include the 2021 F-150 pickup, the Mustang Mach-E electric SUV, Bronco and also the Bronco Sport SUVs.
Most analysts see it as a desperate move to save the company from the market crisis that left most businesses in need of a fast cure to sustain the operations. “These are all very high-profile vehicles,” said Jeff Schuster, an analyst at LMC Automotive. “Since Ford has teased them for quite some time, it is key to get the launch right,” he added.
“Ford’s next launches just got a whole lot harder. There are two key factors: How they handle coming out of COVID-19 shutdown and protecting the supply chain. If one key supplier goes down, it will completely disrupt the launch,” said Martin French, North American managing director of consultant Berylls Strategy Advisors.
Certainly, the future of Ford stock lies with the adoption rate of the newly launched vehicle models and the confidence investors give the management.
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