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Ford's EV Sales Leap. Will the Stock Follow Suit?

Ford's EV sales more than tripled in May. Here's what the chart looks like now.

Shares of Ford  (F)  are up more than 2% on Thursday and pushing to session highs following an update from the automaker.

First, the company announced its May sales, which included its first sales of the new all-electric F-150 Lightning pickup. It also included F-Series pickup sales, which climbed almost 7%, and its best-ever sales results from its Mach-E model.

Overall, May sales fell 4.5% year over year. But that’s better than the 10.5% drop Ford saw in April and it also came amid a more than tripling (up 221.5%) in EV sales.

Clearly, Ford is finding its groove with EV sales -- which ties in with another update from management.

As reported earlier by TheStreet, Ford CEO Jim Farley “outlined the broad strokes of the carmaker's near-term plans to boost electric vehicle sales and accelerate its challenge to Tesla's  (TSLA)  market dominance.”

The company will invest $3.7 billion across several U.S. states, with most of those funds being put toward EVs. The automaker hopes it will help create more than 70,000 direct and indirect jobs.

For now, Wall Street is receiving the news well, although the stock still remains below this year’s high. With Ford stock still down more than 45% from the January high, let’s look at the chart.

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Trading Ford Stock

Daily chart of Ford stock.

Daily chart of Ford stock.

When we look at the chart, there are two very clear positives with Ford stock, followed by several headwinds.

The positives include $12 holding as key support across several weeks of action and the stock’s ability to reclaim the 10-day and 21-day moving averages ahead of today’s rally.

From a headwind perspective, we still have a stock that’s in a bear market — down more than 45% from the high — and trapped below various levels of prior support and intermediate term moving averages.

Most immediately is the $14 level, which was support in early May but is potential resistance now. 

If it is resistance, the bulls need to see Ford stock hold the 10-day and 21-day moving averages as support. That gives us a higher low to work with and could be the start of a new uptrend.

If Ford stock breaks out over $14, then it opens the door to the 10-week and 50-day moving averages, followed by the 23.6% retracement. Above these measures puts the 200-day in play up near $17.