More Recalls Hit Ford Vehicles, Ford Stock (NYSE:F) Slides in Response

Anyone hoping for this year to be better for legacy automaker Ford F -0.08% ▼ , at least as far as recall numbers go, may already be disappointed. Ford launched another set of recalls, this time featuring 1.74 million total vehicles. And investors did not take the news well, sending shares down around 2% in Monday afternoon’s trading.

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The new recalls hit nearly two million cars total, over issues with the rearview camera displays. It turns out that the latest recall connects to a part found in the Ford Bronco and Ford Edge, specifically Broncos made between 2021 and 2026, and Edges from between 2021 and 2024. The part has been known to overheat and shut down. If that happens, the image from the rearview camera will no longer reach the display.

Interestingly, a similar issue with Escapes and Lincoln Corsairs from 2020 to 2022 and Lincoln Aviators and Explorers from 2020 to 2024 emerged. The display in these vehicles will still show an image, but the image displayed may be either flipped or inverted from what is sent from the camera to the infotainment system display. Over-the-air updates are planned, with owner notification letters set to follow. The Escapes, Explorers, Corsairs and Aviators, however, will have longer to wait as no fix yet exists.

“Fighting With McLaren”

Ford’s new Formula 1 engine, developed with Red Bull, recently hit the Australian Grand Prix. Ford did not finish first, or even in the top five, coming out sixth overall. But given that this is a new engine, out on its first run, finishing sixth is not exactly bad news.

Max Verstappen, four-time world champion, noted, “I do feel really proud of the team.They’ve done an incredible job to be where we are, to be fighting with McLaren, with the Mercedes MBGAF +1.12% ▲ engine.” Though reports noted that “the engine sounded terrible” by lap 11, there is still no shortage of optimism that Ford and Red Bull can turn in a winner, even if it takes some time to get there.

Is Ford Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, 12 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 21.99% rally in its share price over the past year, the average F price target of $14.02 per share implies 15.68% upside potential.

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