How to Trade Ford After New EV Announced

July 05, 2023 15:11

Ford announced plans to discontinue one of its most popular models to make way for a new electric vehicle dubbed the 'Tesla killer.' Learn more about Ford's plans and what the analysts are forecasting for the stock below.

Stock: Ford Motor Co.
Symbol for Invest.MT5 Account: F
Date of Idea: 5 July 2023
Time Line: 1 - 6 months
Entry Level: $15.00
Target Level: $20.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Ford's New EV Model

One of Ford's best-selling vehicles over the past 41 years is its F-Series pickup truck which has a combustion engine. In fact, it has been the best-selling truck in America for the past 46 years. But Ford's current F-150 Lightning EV hasn't managed to replicate the same level of success.  

This is why Ford is now focusing on the launch of its new Chevy Silverado EV and its first battery-powered light-duty pickup truck for 2024. Analysts are eager to see how this will compete with Tesla's upcoming electric truck the Cybertruck due to be launched later this year.  

While many individuals may think Tesla is better positioned than Ford in the electric pickup truck battle, it is worth remembering that Ford was the second-best seller of EVs in the US last year. General Motors have now overtaken them this year so far, but Ford's pipeline of EV vehicles could help them to regain their spot.  

Ford is also starting production of an all-electric Explorer SUV in its Cologne Electric Vehicle Center in Germany. $2 billion has been invested to make this Ford's first carbon-neutral factory and investors will want to see a return on this investment through the planned production of nine EV vehicles from the factory.  

While Ford is preparing itself to try and fill the EV demand from consumers it is now a very competitive field. Other carmakers such as VW, GM, Tesla, and BMW are all increasing their EV product range as well. Executives from Ford already stated that they are likely to lose $3 billion this year on EV sales but are still on track to meet their profit target of $9 billion to $11 billion for the year.  

However, the uncertainty is also why analysts are mixed on the stock, as shown below.

Ford Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Ford stock forecast in the past 3 months, there are currently 5 buy, 4 hold and 1 sell rating on the stock. The highest price level for a Ford stock forecast is $20.00 with the lowest price target at $11.00. 

The average price target for a Ford stock forecast is $14.88.

Source: TipRanks, 5 July 2023

 

An Example Trading Idea for the Ford Stock Price

An example trading idea for the Ford share price could be as follows:  

  • Buy the stock on a break above $15.00 to allow for volatility. 
  • Target just below the highest analyst price target of $20.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Ford shares:  
    • If target is reached = $50.00 potential profit [($20.00 - $15.00) * 10 shares].   

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how volatile the stock market is currently.  

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Ford stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Ford Stock in 4 Steps  

With Admirals, you can buy shares in companies like Ford with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Ford. Monthly. Date: July 2018 to July 2023, captured on 5 July 2023. Past performance is not a reliable indicator of future results or future performance.

 

Click on the banner below to trade Ford stock today! ▼▼▼ 

Do You See the Ford Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Ford's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 

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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.