Ford Doing What it Takes to Stay Competitive
The auto maker's management is doing the right thing by investing for a future focused on selling vehicles as well as selling miles, even if it means some losses for the next few years.
We are not changing our fair value estimate for Ford after an informative analyst day we attended at
We think management is doing the right thing by investing for a future focused on selling vehicles as well as selling miles, even if it means some losses for the next few years. The world is moving to more electrified and autonomous vehicles, and Ford needs to remain competitive. Autonomous is especially interesting to us, especially with Ford in August stepping out among automakers to say it will have a Level 4 autonomous vehicle with no pedals or steering wheel, selling over 100,000 units to fleet customers by 2021 and autonomous sales to consumers by 2025. Ford sees autonomous vehicles as 20% of U.S. industry sales in 2030 and these vehicles constituting 10% of U.S. miles traveled by then, up from about 2%-3% in 2025. Chariot and bike sharing are about data collection for routes in dense cities.
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