UBS analyst Joseph Spak reiterated a Buy rating and $17.00 price target on Ford (NYSE: F).

The analyst commented, "DOT Sec. Duffy sent a letter to Ford expressing concern about their relationship with Chinese entities including: 1) their CATL battery license, 2) Geely European JV, 3) delayed plans to reshore Lincoln to the US from China, and 4) reported discussion with BYD over hybrid components. Duffy urged Ford to reduce its dependence on foreign technology. Lawmakers and the US auto industry have pushed for restrictions on China involvement in the US auto market. Ford responded that the letter was a “wrongheaded attempt to capture headlines...We believe the CATL LFP license is the key issue for investors as that is central to LFP batteries (out of their Marshall, MI facility) for the new upcoming UEV platform and Fathom product as well as their BESS initiative. We believe Ford feels confident about their CATL arrangement that should allow their BESS product to be both PTC and ITC eligible. We assign ~$2 of value to BESS in our Ford PT."

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Shares of Ford closed at $14.00 yesterday.