Trading Ford's 66% Surge on Growing EV Market Share

July 05, 2022 11:18

Electric vehicle (EV) stocks were once the biggest theme for tech investors. As the market has rebalanced itself towards a world with higher interest rates, some EV stocks are now trading at historically low price levels.  

While many EV investors focus on Tesla, some studies show that there are other car manufacturers that could overtake Tesla’s EV market share over the next few years.  

Ford is a company on that list. Learn more about Ford’s EV prospects and how to trade it below.   

Stock: Ford Motor Company
Exchange: NYSE
Symbol for Invest.MT5 Account: F
Date of Idea: 5 July 2022
Time Line: 1 - 6 months
Entry Level: $12.50
Target Level: $18.00
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. 

Why Trade Ford Stock?

Research from senior auto analysts at Bank of America states that Tesla will lose its electric vehicle market share by 2025. This will favour established car manufacturers such as General Motors and Ford who have a much bigger range of new electric vehicles and the distribution network to sell them. 

Ford is expected to have a market share of around 15% by 2025 which is up from around 6% currently. The growth in the demand for electric vehicles is undeniable as projections from LMC Automotive show below.  

Source: LMC Automotive via CNBC

Bank of America’s research also highlights that Elon Musk may have missed the chance to overtake the traditional vehicle industry as products are being introduced too slowly with a limited range of products available.  

Research also shows that Ford shares are historically cheap when compared to the rest of the market using current and forward price to earnings (P/E) ratio metrics. While Ford may be on the top of the list when using these metrics, it is only because the recent price collapse rebalanced the stock back to price to earnings ratios more fitting a traditional auto carmaker.  

However, analysts at Citigroup believe that the underlying story for Ford is moving in the right direction with upcoming EV launches. They also highlight that the stock could react well to favourable cyclical developments in the auto sector if upcoming data points reassure investors.   

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 7 buy, 9 holds and 1 sell rating on the stock. The highest price level for a Ford stock forecast is $32.00 with the lowest price target at $12.00. 

The average price target for a Ford stock forecast is $18.81 which represents more than 66% upside from current levels, at the time of writing.    

Source: TipRanks, 5 July 2022 

An Example Trading Idea for the Ford Stock Price

An example trading idea for the Ford stock forecast could be as follows:  

  • Buy the stock on a break above $12.50 to allow for current market volatility. 
  • Target just below the average analyst price target at $18.00. 
  • 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 = $55.00 potential profit ($18.00 - $12.50 *10 shares).

It’s wise to remember that the share price is unlikely to go up in a straight line and it may even go much further down before it rises, especially considering the recent sell-off in global stock markets.  

Therefore, be sure to exercise good risk management which is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade and the risks involved.  

Another factor to consider is the commission as these can eat into your profits. With the Admirals Invest.MT5 account you can buy US stocks 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).  

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 Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for Ford at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   

Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance. 

Click on the banner below to buy 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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  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
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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.