Will Ford Stock Reach $100? Ford Stock Forecast

Ford stock reaching $100 is going to be very difficult. However, the company’s recent push towards EVs and historical propensity to trade significantly above its current price are factors that could work in its favor.

Ford Motor Company (NYSE: F), a renowned automobile manufacturer, has long been a significant player in the market. Investors and enthusiasts are keen to evaluate whether Ford stock has the potential to reach the milestone of $100 per share. 

In this article, we will delve into the factors that could drive Ford’s stock price growth in the future and the potential obstacles it may encounter along the way. We’ll also examine our algorithmic Ford stock price forecast for additional insights.

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Will Ford stock reach $100? Examining potential Ford stock price catalysts

There are several market trends and company-specific factors that could help the price of Ford stock, which is currently trading at $12.4 per share, reach $100. While the 8.1x increase the stock would need to reach the $100 milestone seems difficult, it is far from being impossible, especially in the long term. In fact, Ford stock traded as high as $35.5 all the way back in 1999, which means that the stock was already trading nearly 3x above its current price in the past, so it could pull off a similar feat in the future. With that said, let’s explore Ford’s main growth catalysts.

Electric vehicle (EV) strategy

Ford has made substantial strides in its commitment to electric vehicles. The company’s Mustang Mach-E, an all-electric SUV, has received positive reviews and has contributed to Ford’s expanding EV market presence (the car was the fourth best-selling EV in the US in 2022). As the global demand for EVs continues to rise, Ford’s robust EV strategy positions it to capitalize on this trend and potentially boost its stock price.

In addition, the company has recently partnered with Tesla (TSLA), the leading EV manufacturer, to use its vast charging network. This will allow Ford EV owners to use Tesla’s network of 12,000 Supercharger stations, which could significantly boost Ford’s EV sales going forward. In fact, there are several parallels between the long-term potential growth of Tesla and Ford, as both are betting big on their lineups of electric SUVs.

Revamped product lineup

Ford’s recent efforts to revamp its product lineup have garnered attention from consumers and investors alike. The introduction of highly anticipated vehicles like the all-new Ford F-150 Lightning, an electric version of its popular pickup truck, has generated excitement and has the potential to drive sales and increase stock value.

The Ford F-150 Lightning is one of the most popular electric vehicles in the US. Image source: Ford

According to Top Speed, the Ford-150 Lightning was the 10th best-selling EV in the US in 2022 (with 15,600 units shipped). What’s even more encouraging is the fact that Ford received 200,000 reservations for the electric version of the iconic F-150, which demonstrates there is a considerable market for electric trucks. Per a Barrons report, Ford expects to sell 80,000 to 90,000 F-150 Lighitns in 2023, a considerable jump from 2022.

Cost-cutting measures

Ford has implemented cost-cutting measures, including reducing its workforce and focusing on core operations. By streamlining operations and improving efficiency, the company aims to boost profitability. These efforts, if successful, could positively impact Ford’s stock price.

In May, Ford announced that it would be laying off 1,300 employees in China. The decision came as a result of a -33% drop in year-over-year vehicle sales in the country and as a cost-cutting measure. Nevertheless, China remains a strategic market for Ford, according to the statement from Ford China. It is worth noting that Tesla also conducted large workforce cuts in 2022 and 2023 as well, despite the growing EV sale numbers.

Increased profitability

Ford’s financial performance has improved in recent years, with the company reporting consecutive quarters of profitability. Strong financial results, driven by factors such as increased vehicle sales and improved margins, can instill investor confidence and potentially propel the stock price towards the $100 mark.

Both the net income and net profit margins saw major YoY increases in 2023. Ford’s net income rose by +156% to $1.76 billion, while its net profit margin increased by +147% in the same period. In Q1 2023, Ford posted a total revenue of $41.47 billion and a net income of $1.76 billion.

Regulatory environment

The automotive industry is subject to various regulations, including emissions standards and safety requirements. Changes in regulations or the introduction of new policies can impact automakers’ operations and potentially increase costs. Ford must navigate these regulatory landscapes effectively to mitigate potential setbacks and maintain stock price growth to have any chance of reaching the $100 price tag.

Ford stock forecast 2023-2024: The algorithm predicts a price drop

Our Ford stock price prediction algorithm forecasts a -53% price drop in the next year. 

According to the CoinCodex stock price prediction algorithm, Ford stock is in for a rough time in the next 12 months. While the stock is expected to trade above $12 in the next 3 months, it will see a considerable drop in the next 6 to 12 months. By next June, Ford stock is expected to change hands at roughly $5.78, which is 53.3% lower than the current price of $12.39.

The bottom line: Ford stock could theoretically reach $100, but it’s going to be challenging

While predicting the future performance of a stock is challenging, several factors indicate that Ford has the potential to reach $100 per share. The company’s EV strategy, revamped product lineup, cost-cutting measures, and increased profitability all contribute to a positive outlook. 

However, challenges such as supply chain issues, competition in the EV market, economic conditions, and regulatory environments can hinder Ford’s stock price growth. If you want to learn more about prominent stock and their investment prospects, check our articles on whether you should invest in Apple and whether Tesla is a good buy right now.