The shares of Ford (F) have been gaining momentum lately due to the company’s rapid advancements in battery technology and strategic investments in the EV space. However, because the company’s production in the second half of 2021 is expected to bear the brunt of the global semiconductor chip shortage, the question becomes will the stock be able to maintain its momentum? Read more to find out.Founded in 1903, leading auto manufacturer Ford Motor Company (NYSE:F) operates through three segments—automotive, mobility, and Ford Credit. The company’s recent, high-profile launches of its Mustang Mach-E SUV, all-new 2021 F-150 pickup and Bronco Sport SUV, as well as the introduction of its all-new 2022 F-150 Lightning Pro have helped the stock gain 34.4% over the past month and 80.7% so far this year.
As the automaker continues to invest heavily in electric vehicles to keep pace with competitors, investors have been bullish about the stock’s upside potential.
However, given the current global semiconductor chip shortage, F assumes that it will lose 10% of its expected second-half 2021 production. Since the semiconductor shortage is expected to get worse before it gets better, the company’s business prospects for this year remain uncertain. Although F’s EV plans have garnered significant investor attention, its weak profit margin amid rising competition in the electric vehicle (EV) space could cause the stock to suffer a pullback in the coming months.