Trump's Truck Tariff Announcement Pushes Ford Shares Up
Ford, as a More Consumer-Focused Car Manufacturer, May Be Less Likely to Benefit Than Trucking Stocks
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Ford Motor Co. shares climbed to their highest level since July 2024 on Sept. 26 on President Donald Trump’s newly announced truck levies.
The stock broke above a key resistance level of $12 during intraday trading after Trump announced a 25% tariff on heavy trucks produced outside of the U.S. The levies will go into effect Oct. 1. Shares ended the session up 3.4%.
The tariff news sparked options activity that drove the stock higher, according to Dave Mazza, CEO at Roundhill Investments. Trading of Ford call options rose to more than 303,000, compared with a 20-day average of about 37,000.
“That kind of flow often forces market makers to hedge by buying stock,” Mazza said. “With Ford pressing up against a key technical breakout level, momentum could easily carry if buyers stay engaged.”
Ford, as a more consumer-focused car manufacturer, may be less likely to benefit than trucking stocks like Paccar Inc. Since Ford produces only a small number of Class 7 trucks and chassis, or vehicles weighing 26,001 to 33,000 pounds, the levies won’t be enough to affect the company’s bottom line, said Steve Man, an analyst at Bloomberg Intelligence.
The ongoing tariff saga has roiled the U.S. auto market, and Ford, along with peer General Motors Co., has struggled to navigate the shifting backdrop. Both companies have also entered the electric vehicle market, with mixed results.
RELATED: Ford, Slate Focus on Affordable EV Pickup Trucks
While Ford shares have risen nearly 40% since its April lows, Mazza said traders will need to see stabilized sales and improving EV demand to sustain a long-term rally.
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John Kolovos, chief technical strategist at Macro Risk Advisors, said the stock is trying to reverse its multiyear downtrend and reach its 2023 and 2024 highs. But the advance is in its early days and may not stretch very far.
“We just don’t have enough information to make the long-term call,” Kolovos said.
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