Ford's Gas-Powered Fleet Provides Hedge Against Slowing EV Demand, While Strong Cash Flows and Attractive Valuation Offer Income Potential
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Ford's reliance on ICE vehicles provides a hedge against a slowing EV market since most of its sales are still gas-powered cars.
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The EV market is facing weaker demand and Ford has cut back production targets for the F-150 Lightning as a result.
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Ford is guiding for $6-7 billion in free cash flow in 2024, providing potential for increased dividends.
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At a P/E of 7.3X, Ford offers strong earnings value compared to the market.
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With a 4.5% dividend yield and potential for special dividends, Ford is an appealing investment despite the slowing EV market.