Why Indonesia's EV Ambitions Mean It Will Burn More Coal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 06 2024
0mins
Should l Buy F?
Source: Benzinga
Indonesian Nickel Industry and President-Elect Prabowo Subianto:
- Prabowo Subianto is expected to continue developing Indonesia's nickel industry.
- There is uncertainty on how he will balance relations with China, the main investor, and attract Western investors concerned about environmental impact.
Electric-Vehicle Ambitions:
- Indonesia aims to become a hub for battery and electric vehicle production.
- Tax incentives are in place to boost domestic EV production and battery capacity by 2030.
- However, increased production may lead to more coal consumption, contradicting climate-friendly goals.
China's Dominance and Western Investments:
- China is the primary investor in Indonesia's nickel industry, but other countries are entering the market.
- Western companies with stricter standards could drive reforms in Indonesia, potentially increasing costs for Indonesian nickel products.
Environmental Concerns and Coal Usage:
- Indonesian nickel refining relies heavily on coal-fired power generation.
- Surging demand for nickel may lead to increased coal consumption in Indonesia.
Future Challenges and Reforms:
- Implementing emissions standards and carbon taxes could affect nickel production processes.
- North American and European companies may reject Indonesian nickel produced unsustainably.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.800
Low
11.00
Averages
13.65
High
16.00
Current: 13.800
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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