Is Ford Stock a Good Bet in 2022?

Tesla captured a lot of the financial news for 2021, due, in part, to hitting a $1 trillion market cap — a feat previously limited to big tech in the United States. But Musk's EV company wasn't the only financial mover and shaker in the auto industry in 2021. Ford stock prices rose by almost 140% in 2021, raising questions about whether it's still a good buy in 2022.

The main question is whether or not Ford is peaking. Will prices fall off or does the company have momentum to carry more growth into 2022?

Obviously, no one knows exactly what the future will hold, but looking back at what drove Ford stock prices in 2021 can help investors decide whether to hold, buy, or sell going into 2022.

The company unveiled some details about its Ford+ turnaround plan in May 2021, which created more investor confidence and drove stock prices up some. In October 2021, Ford made good on some of those promises, delivering a positive third-quarter earnings report that outpaced the expectation of analysts. More investors bought in, bringing up stock prices again. In December 2021, Ford noted that it would produce triple the amount of Mustang Mach-E electric vehicles compared to previous plans, and that preorders for the F-150 Lightning truck EV reached 200,000 units reserved.

Like many automakers, Ford is pivoting to electronic vehicles — a move that puts it at the forefront of what many believe with be automotive future and an action that adds potential ESG value to its stock. Ford, like Tesla, also seems to have avoided some of the woes other manufacturers are experiencing when it comes to obtaining chips needed to manufacture cars. That has allowed Ford to continue to make and sell vehicles, even amid the supply chain pressures created by the pandemic.

The bottom line: all these positive factors are carrying into 2022, with many analysts believing Ford's upward swing isn't quite done.