2030 forecast
Ford is planning on spending a lot of money in the next few years, and its research and development (R&D) for its inexpensive EV car is operating in the red, so the next five years are kind of murky at best for stock prices. CoinCodex predicts an average annualized price of $7.22, but I think if things go as planned, or even close to as planned, there will be more interest in the stock, and it should trade for a higher price.
Of course, Ford still pays a decent dividend, and that can't be forgotten when you're considering the future value of the stock. As long as it maintains, you're still making money with a hefty dividend payout.
Ford's highlights and risks
Ford's brand recognition and long history as a successful auto manufacturer have given it a lot of room to experiment and take some chances. Some of these things have turned into great ideas for the company. Here are some highlights and risks to consider.
- Ford's $30k EV solution. The company has been setting itself up to compete with much cheaper Chinese electric vehicles with a purported low-cost EV for the U.S. market. The company has put considerable money and effort into this concept. It's both a risk and a highlight. If it goes well, it will be a big deal for Ford stocks, but if it fails, it's going to just be a massive black hole for the balance sheet.
- Non-vehicle income streams. Ford is also getting into other income streams, which include mass-producing its battery technology for other companies and developing fleet software for commercial customers. Both of these streams could be expanded and become much larger contributors to the company's income, helping to even out the bumpy nature of car sales and mitigate the effects of an over-extended consumer by leaning more into corporations and business customers.
- Tariff drama continues. Tariffs are still possibly uncertain, as they seem to come and go like the wind, raising prices on a whole bunch of raw materials and electronic components that Ford needs to produce vehicles. The chaos they're bringing to the American economy is also putting pressure on car buyers, who may be putting off upgrading or choosing less expensive alternatives.