Andrew Willis: Not to be a downer on Ford's great sales figures recently, but it's worth keeping in mind that these numbers are relative to a weak 2021 when the company was hit more so than peers by a shortage in microchips that persists today. We expect a full recovery from the chip shortage as early as next year, however, with improved supply in the coming months.
Sector strategist David Whiston does see some headwinds with restructuring and rising commodity prices, which could also be keeping investors on the sidelines. Ford's switch to electric vehicles is indeed going to take years to bear fruit, but that could look like 2 million EVs sold by year 2026. We also like the focus on light truck models, which are best-sellers. Lastly, for those concerned the company may lose market share, consider that 75% of Ford Lightning reservations in June were from owners of rival brands.
For Morningstar, I'm Andrew Willis.
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