EVs will pay off for Ford investors

Article Excerpt

FORD MOTOR CO. $9.08 is a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $35.4 billion; Price-to-sales ratio: 0.3; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.ford.com) plans to spend $11.5 billion through 2022 to expand its production of electric-powered vehicles. Those include its E-Transit van for commercial and industrial users. Although the new van, at $35,000, will cost $10,000 more than a regular gasoline-powered van, Ford expects lower operating and maintenance costs will spur strong demand. That should help maintain Ford’s high 57% share of the North American commercial van market. The company is now considering making its own batteries instead of relying on third-party suppliers. However, battery technology is very complex and Ford would probably have to spend several more billions of dollars on that project. Ford is a hold. hold…