Ford Motor Co (F) said earlier this week it would hike the prices of its electric F-150 Lightning pickup, as the company faces soaring raw material costs.
The prices of Ford’s 2023 model F-150 lightning will be raised by between $6,000 and $8,500, depending on the variant. The price of the cheapest Pro model is currently set at about $47,000, Ford said.
Yet, clients who have already ordered the F-150 Lightning pickup and are waiting for delivery will not be affected by the higher prices, the US auto maker said.
In July, Ford said it was projecting a $4 billion increase in commodity costs in 2022, which it would attempt to offset through price hikes.
Ford Motor Co’s shares closed lower for the fourth time in the past ten trading sessions in New York on Tuesday. It has also been the steepest single-session loss since June 16th. The stock went down 3.74% ($0.59) to $15.19, after touching an intraday low at $15.15. The latter has been a price level not seen since August 5th ($15.13).
The shares of Ford Motor Company have retreated 26.87% so far in 2022 compared with a 13.51% 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 11 out of 17 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. The median price target on the stock stands at $16.08.