5 Best Auto Stocks to Invest In

3. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 46

Ford Motor Company (NYSE:F) is an iconic American car company that is widely credited with having pioneered the automotive revolution and mass production. The company manufactures and sells a wide variety of vehicles in the U.S., and it is headquartered in Dearborn, Michigan.

Ford Motor Company (NYSE:F) is heavily investing in the electric vehicle space, as the company plans to have a production capacity of 600,000 vehicles by the end of 2023 and grow it to a whopping three million by 2026. This is a key point as the recently passed Inflation Reduction Act in the U.S. Senate promises major incentives to consumers to buy electric vehicles. The company’s free cash flows also grew by a remarkable 164% annually by the end of its second fiscal quarter of 2022.

Deutsche Bank increased Ford Motor Company (NYSE:F)’s share price target to $13 from $12 in July 2022, citing the company’s strong fiscal performance and pricing model. Insider Monkey scanned 895 hedge fund portfolios for this year’s first quarter to discover that 46 had bought the company’s shares.

D. E. Shaw’s D E Shaw is Ford Motor Company (NYSE:F)’s largest investor. It has a $257 million stake that comes via 23 million shares.

Baron Funds mentioned the company in its Q1 2022 investor letter, outlining that:

“Ford (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”