Ford reported a subdued rise in sales during the second quarter as it grappled with a cyberattack impacting critical software systems in dealerships. The automaker recorded sales of 536,050 vehicles in Q2, reflecting a modest 1% increase from the previous year. This sluggish growth can be attributed to escalating borrowing costs and the looming fog of economic uncertainty, putting a damper on consumer demand.
Driving Forward: Dissecting Ford’s Q2 Sales
Despite the headwinds, Ford’s truck segment emerged as a beacon of growth, witnessing a 5% uptick year-over-year with truck sales hitting 308,920 units. This marked Ford’s strongest Q2 truck sales performance since 2019, with the sale of 199,463 F-Series trucks being a notable highlight.
On the other side of the spectrum, electric vehicle (EV) sales surged by an impressive 61% compared to the previous year, reaching 23,957 units. The optimistic outlook for Ford’s EV lineup, especially the Mustang Mach-E and F-150 Lightning, has been instrumental in attracting a new wave of customers.
Analysts bullish on Ford see bright prospects for its EV business, believing that operational efficiency gains and eventual profitability are distinctly on the horizon for the company’s EV division.
In a parallel development, Ford’s sales of hybrid vehicles witnessed a substantial surge of 56% year-over-year, culminating in a new quarterly sales record for the hybrid vehicles unit.
Navigating Market Waters: Is Ford a Viable Investment?
Amidst the ups and downs, analysts maintain a guarded sense of optimism regarding Ford’s stock, with a Moderate Buy consensus rating derived from seven Buy recommendations, four Holds, and one Sell. Over the past year, Ford has witnessed a decline exceeding 9%, while the average price target of $15.36 suggests a prospective upside of 19.5% from current levels.
