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Ford shares close higher on Tuesday, company announces the recall of 49,000 US Mustang Mach-E vehicles

Ford Motor Co (F) announced on Tuesday the recall of nearly 49,000 Mustang Mach-E electric vehicles in the United States, as a part could overheat and lead to propulsion power loss.

DC fast charging and repeated wide-open pedal events may cause the high-voltage battery main contactors to overheat, the company warned.

The US auto maker said “overheating may lead to arcing and deformation of the electrical contact surfaces, which can result in a contactor that remains open or a contactor that welds closed.”

In case an overheated contactor opens while the vehicles are in motion, this could lead to a loss of propulsion power and heighten the risk of an incident, Ford said.

The issue, which affects Mach-E vehicles produced between May 2020 and May 2022, will be addressed with a software update, Ford said, and it will begin in July.

Ford Motor Co’s shares closed higher for the third time in the past ten trading sessions in New York on Tuesday. The stock went up 3.30% ($0.39) to $12.20, after touching an intraday high at $12.42. The latter has been a price level not seen since June 10th ($13.21).

The shares of Ford Motor Company have retreated 41.26% so far in 2022 compared with a 21.63% loss for the benchmark index, S&P 500 (SPX).

In 2021, Ford Motor Co’s stock went up 136.29%, thus, it outperformed the S&P 500, which registered a 26.89% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 10 out of 17 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 6 – as “Buy”. The median price target on the stock stands at $18.63.

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