Skip to content

Ford stock rally 42% in 6 months on vehicle sales, EVs addition

The front image of old Ford Mustang vehicle.

Ford (NYSE: F) stock price remained in the red in fiscal 2020, but the stock price of one of the world’s largest automobile manufacturers recovered sharply by 42% in the last six months.

The recovery is mostly attributed to the rebound in vehicle sales all over the world. The rosy outlook for fiscal 2021 added to investors’ sentiments. The company’s strategy of accelerating its electric vehicle production is among the catalysts for share price momentum. Its first electric vehicle, Mustang Mach-E, has recently started hitting showrooms for reviews.

Ford stock price performance. Finviz chart. See more stocks here.

Ford stock price is currently trading around the $8.50 level, down slightly from the 52-weeks high of $9.45 per share. Shares of Ford are up more than 100% from March low of $4 a share.

Vehicles sale momentum will support Ford stock in 2021

Although Ford has had a rough 2020 due to pandemic, the automobile industry’s rosy outlook will support its share price momentum.

The research firm CFRA reported that auto sales are likely growing at a double-digit rate in 2021.

“After COVID-19 ended a five-year streak of 17M-plus light vehicle sales, the firm expects heavy growth on the back of a vaccine-aided GDP rebound, improving consumer sentiment, low-interest rates, and low gas prices (and a full-year 16M units, a 12.2% gain),” CFRA noted.

IHS Markit also hinted at the extension of vehicle sales momentum into fiscal 2021. The report shows global new light-vehicle sales are expected to grow 9% from a 2020 level, thanks to a recovery in industry demand levels.

Ford’s September quarter automotive revenue grew 2.3% year over year, topping analysts’ expectations by $1.8 billion. Moreover, the company’s strategy of introducing electric vehicles in the days ahead supports the bull case. Its electric vehicle Mustang Mach-E is rated the best vehicle to buy in 2021, got 8.6 out of 10 in TCC Ratings.  

Related video: Ford Mustang Mach-E Review: Interior, Tech and Handling

When Ford announced a new Mustang – an all-electric crossover Mustang called the ‘Mach-E’ – the automotive world didn’t quite know what to think. Some screamed ‘blasphemy’, and some saw a true Tesla rival. So, we sent Top Gear magazine’s Head of Car Testing Ollie Marriage to find out what the newest member of the Mustang family is really like.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.