Ford Motor Co (F) reported its weakest quarterly vehicle sales in China since the beginning of the COVID-19 pandemic amid resurging virus infections in the country and continuing global supply chain disruptions.
The auto maker sold 120,000 vehicles during the second quarter, or a nearly 22% drop compared to the same period a year ago.
The sales figure has been Ford’s weakest in Greater China since the first quarter of 2020, when government-imposed coronavirus restrictions brought the country’s production to a standstill. Back then, Ford sold fewer than 89,000 vehicles.
“The pandemic’s resurgence in the past few months challenged us to overcome supply chain and logistics obstacles to positioning Ford for growth in the second half of the year,” Anning Chen, President and Chief Executive Officer of Ford China, said in a statement.
Still, June vehicle sales exceeded 50,000 units, while rising 3% from June 2021 and 38% from May 2022.
Ford Motor Co’s shares closed lower for the sixth time in the past ten trading sessions in New York on Friday. The stock went down 0.26% ($0.03) to $11.62, after touching an intraday high at $11.78. The latter has been a price level not seen since June 28th ($12.44).
The shares of Ford Motor Company have retreated 44.05% so far in 2022 compared with an 18.19% 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 $17.50.