Ford stock price forecast after the $19.5 billion EV charge

Core Viewpoint - Ford's significant investment in the electric vehicle (EV) sector has not yielded the expected results, leading to a strategic pivot away from EVs and a substantial financial write-down of $19.5 billion [2][3][4]. Group 1: Company Strategy and Financial Adjustments - Ford's stock price has increased to $13.65, reflecting a nearly 70% rise from its lowest point in April, resulting in a market capitalization exceeding $54 billion [1]. - The company is canceling several planned EV products, including the F-series truck, and will shift the F-150 Lightning to a hybrid model using Extended Range Electric Vehicle (EREV) technology [4]. - Ford's management has revised its profit forecast upward to $7 billion, an increase from the previous estimate of $6 billion to $6.5 billion, attributed to cost-cutting measures and a focus on more profitable vehicle segments [5]. Group 2: Market Context and Industry Trends - Other major automotive companies, such as Audi, General Motors, and Porsche, have also re-evaluated their EV strategies, which has positively impacted their stock prices [2]. - The European Commission is expected to reverse its plan to ban Internal Combustion Engines (ICE) by 2035, influenced by pressure from countries like Germany and Italy [3]. - Demand for utility-scale batteries has surged by 50% in the first ten months of the year, reaching 39.3 gigawatts, prompting Ford to consider converting some battery plants to focus on stationary battery production [6]. Group 3: Financial Performance - Ford's revenue for the third quarter rose by 9% to $50.5 billion, driven by strong sales of its truck models, with the Bronco segment share increasing to 30% [8]. - Analysts project Ford's revenue for the fourth quarter to be $41.13 billion, leading to an estimated total fiscal revenue of $174 billion [9]. Group 4: Stock Performance and Technical Analysis - Ford's stock has shown a bullish trend, rebounding from a low of $8.22 in April to its current high of $13.65, surpassing key resistance levels [11]. - The stock has formed a cup-and-handle pattern, indicating potential for further price increases, with bulls targeting a resistance level of $15 [12].