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The Zacks Analyst Blog Highlights Ford Motor, Tesla

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For Immediate Release

Chicago, IL – July 1, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ford Motor Co. (F - Free Report) , Tesla Inc. (TSLA - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Ford (F - Free Report) Eliminates End-of-Lease Buyout Options for EVs

Ford Motor Co. recently announced that customers leasing any of the company's all-electric vehicles (EVs) will no longer have the option to buy out the vehicle at the lease end. The policy change has come into effect in 37 states and will roll out nationwide by the year's end. The change impacts the automaker's three available EVs, namely the F-150 Lightning, the Mustang Mach-E and the E-Transit. It applies to leases initiated on or after Jun 15.

Customers will be able to return the vehicle and get it renewed into a new vehicle, or they may only return it at the end of the lease. For customers who signed a lease prior to this date, the company will provide the opportunity to buy out the vehicle.

The automaker opined that the changes to its lease policy will support its EV battery recycling and materials. Ford had previously announced a $22 billion electrification strategy for establishing the Ion Park global battery center in southeast Michigan. At the facility, Ford intends to scale battery design and production.

The company is aiming for sustainable EVs and driving down the cost of batteries, thereby making EVs accessible and affordable for more Americans. Ford Credit's plan for EV leasing will ensure that vehicles remain in the Ford network longer, so the company can better manage battery recycling and materials.

Ford's announcement comes at a time when the inventory levels of new vehicles are low, and the price of used cars is soaring by the day. For consumers coming up on the end of their lease, a vehicle buyout is the most economical choice because the residual value set at the start of the contract will likely be lower than the vehicle's current market value.

Ford isn't the only automaker to bring changes to its lease policy. In April, Tesla Inc. stated that it will stop lease buyouts for its models. It was the second time that Tesla adjusted its policy after imposing lease restrictions on the Model 3 in 2019.

Shares of Ford have lost 22.8% over the past year compared to its industry's 18.4% decline.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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