Ford on Monday reported a continued rise in monthly hybrid sales, the latest indication that its strategic shift away from loss-making electric vehicles and easing demand is paying off. Jim Cramer sees a window for investors to act. Ford shares traded up as much as 4% on Monday after a strong February sales report. The automaker posted a 31.5% increase in hybrid vehicles year-over-year. Electric car sales increased by 80%. But this is compared to the same period last year when production was uneven. Sales of its conventional internal combustion engine (ICE) vehicles also increased by 7.5%. Overall, Ford vehicle sales rose 10.5% during the month. F YTD Mountain Ford performance year to date. Jim Cramer said Monday that hybrids “will be a breakthrough for Ford.” Ford is also estimated to have stronger sales in March and April, as the automaker sells its 2023 models ahead of the spring selling season. “I urge people to buy this thing before they go to $15,” Jim said. Ford shares were trading at less than $13 Monday afternoon. Ford's high-margin hybrids, a major growth hub, saw sales increase 20% last year. CEO Jim Farley said last month, on the automaker's fourth-quarter earnings call, that he expects the segment to rise 40% in 2024. Back in September, Ford announced plans to double production of the F-150 hybrid pickup to help offset Losses in 2024. The company's Model e business, which includes its fleet of electric cars. Slow adoption of electric vehicles in the United States has forced Ford to implement a series of electric vehicle price cuts to cut production of its all-electric Lightning vehicle in half this year. Model e posted a full-year 2023 EBIT (earnings before interest and tax) loss of $4.7 billion. The Ford Pro commercial fleet business posted earnings before interest and taxes of $7.2 billion last year, more than double 2022. Ford Blue, which includes ICE and hybrid vehicles, posted earnings before interest and taxes of $7.5 billion. For 2024, Ford expects blue to be flat; Pro to grow to $8 billion to $9 billion; Model E losses will widen to $5 billion to $5.5 billion. Momentum in the hybrid market isn't slowing down, according to CEO Jim Farley, who recently said Ford's hybrids are attracting customers on the fence about electric vehicles but who want improved fuel efficiency. (Jim Cramer's Charitable Trust is long F. See here for a full list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you'll receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund's portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No obligation or fiduciary duty exists or is created by your receipt of any information provided in connection with the Investment Club. No specific results or profits are guaranteed.
The Ford Motor Company logo in Inwood, New York, on February 5, 2024.
Charlie Tripalo | AFP | Getty Images
stronghold On Monday, it announced a continued rise in monthly hybrid sales, the latest indication that its strategic shift away from loss-making electric vehicles and easing demand is paying off.
Jim Cramer sees a window for investors to act.
