In recent months, EV stocks have come under pressure as lack of charging infrastructure, range anxiety, cost of owning an electric vehicle, and supply chain issues weighed on adoption.Such headwinds pushed several automakers into dialing down their plans of expanding into electric vehicles to focus on hybrids instead.But it looks like Ford Motor Co (NYSE: ) is not one of them.Sure, Ford is betting on hybrid vehicles, but it hasn’t entirely given up on its EV plans either.On Monday, the legacy car manufacturer announced “” – a new benefits program that will enable customers to opt for free installation of equipment to charge their electric vehicles at home.
Ford Power Promise may help boost EV sales
Ford Motor expects its new initiative to lower the cost of owning an electric vehicle and, therefore, help boost its EV sales moving forward.Additionally, the automaker plans on reopening its factory in Chennai, India, and is rumored to use that plant to export EVs from India.Put that together with a reasonable price-to-earnings multiple of 11 and a lucrative dividend yield of 5.67% and Ford stock starts to look like an attractive pick for exposure to the EV space.Ford’s continued commitment to electric vehicles is significant also because it may help it regain some of the share it has lost in China which is switching rather quickly to EVs.More than 50% of the new passenger cars sold by the world’s largest automaker were electric vehicles in July.
Ford Model e is burning cash fast
On the flip side, Ford stock fails to impress Victoria Greene of G Squared Private Wealth.The chief investment officer expects F share price to tank further to $9.70 moving forward which translates to about an 8.0% decline from here.“They just can’t get it together, they’re just losing ground,” she told investors on CNBC’s “” last week.All Ford has is the F-150 and that isn’t enough to compete in the EV space, she added.Its Model e is expected to lose $5.5 billion this year and it will likely take more than Ford Power Promise to make that business profitable.It is also worth mentioning that none of the US legacy automakers have succeeded in launching electric vehicles for under $30,000, which will make it exceptionally difficult for them to go up against the likes of BYD that the late Charlie Munger once said is “so far ahead of Tesla in China, it’s almost ridiculous”.More By This Author:
Ford Stock: Is It Still A Good EV Play?
