Ford Motor Company Shares Take a Hit Despite Record Sales Growth
Ford Motor Company (NYSE:F) shares plummeted on Thursday, despite the company’s announcement of record sales growth in the Middle East in 2024. The downgrade by Bernstein analyst Toni Sacconaghi from Outperform to Market Perform, with a price forecast of $11, contributed to the decline.
Electrifying the Middle East
However, Ford’s success in the region is undeniable. The introduction of its newest lineup, including the highly anticipated Mustang Mach-E and Territory Hybrid, showcases the company’s commitment to an electrified future. According to Kay Hart, president of Ford’s International Markets Group, the Mustang Mach-E is Ford’s first fully electric vehicle for the region and one of the most exciting vehicles the company has ever produced.
Expanding Connected Services
Ford is also expanding its connected services offering, with the 2025 introduction of FordPass for customers in the Middle East. This move is expected to enhance the driving experience for Ford owners in the region. Ravi Ravichandran, president of Ford Middle East, attributed the success to strong market share gains by distributors in key countries such as the United Arab Emirates, Kuwait, Bahrain, Qatar, and Saudi Arabia.
Enhancing Regional Operations
Next year, Ford will accelerate the launch of Ford Connected Services with the FordPass app, starting in the UAE and followed by Saudi Arabia. The company is also opening a new parts distribution center in the UAE, slated for January 2025, which will enable faster delivery of parts to distributors and ensure quicker service for Ford owners.
Investor Insights
Despite the current dip, F stock has gained over 8% in the past year, according to Benzinga Pro. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and WBI Power Factor High Dividend ETF (NYSE:WBIY).
Current Price Action
F shares are trading lower by 1.79% to $10.99 as of Thursday’s last check.
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