F Stock Down 2%, Ford Cuts F-150 Pickup Truck Production
Coinspeaker
F Stock Down 2%, Ford Cuts F-150 Pickup Truck Production
Ford Motor Co (NYSE: F) stock closed yesterday trading at $12.90, down 2.05% from the day’s opening price. Meanwhile, F stock continued with the drop during the extended trading session. According to market analytics provided by MarketWatch, F stock traded around $12.84, down approximately 0.47% as of August 26, 2021, at 7:59 p.m. EDT.
The dip in F stock has directly been attributed to news that the company is set to cut the product of one of its most profitable car units due to chip shortage. According to the company, the production of the F-150 pickup truck, Ford Edge, and Lincoln Nautilus crossovers will experience a cut down next week due to the ongoing global shortage of semiconductor chips.
“Our teams continue making the most of our available semiconductor allocation, finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” the company said in a statement.
As noted earlier by a consulting firm AlixPartners, the semiconductor chip shortage is expected to cost the automotive industry a whopping $110 billion in revenue by the end of this year. Notably, the firm revised its initial forecast made in January by 81% from $60.6 billion.
Besides the supply chain disruptions by the Covid pandemic, there have been other factors that have affected the semiconductor global shortage. Among them, the fire incident at a chip supplier plant near Tokyo. Additionally, the huge rainfall downpour that disrupted most parts of Europe and Asia resulted in supply chain disruptions.
Following the announcement of chip shortage by the company, Oakville Assembly Plant in Canada and Kansas City Assembly Plant in Missouri will be closed for a week.
F Stock and Ford Market Outlook
Ford stock has significantly rebounded from the Covid crisis that began earlier last year. According to metrics provided by MarketWatch, F stock has added approximately 86.69%, and 46.76% in the past year and eight months respectively through Thursday.
However, the company’s shares have dropped approximately 13.31%, and 10.35% in the past three months and one month respectively through Thursday. The company has a reported market valuation of around $52.61 billion, with approximately 3.92 billion outstanding shares.
According to a survey conducted by MarketWatch, 23 ratings gave the company’s stock an average rating of Over.
The company continues to push through increasing competition from other carmakers like Tesla that have experienced huge growth in the past few years.