Ford (NYSE: F) shares are flat this year, while the S&P is up 11%. Major rival Toyota’s (NYSE: TM) shares have risen 18% over the period. Ford continues to suffer from the battering it took as its investment in EVs cratered. The Ford family has hurt the company.
No car company bragged more about how it would conquer the EV market than Ford, America’s No.2 manufacturer. It said it would open an EV “mega campus” in Kentucky as part of a massive investment. At the time, the company commented, “Ford’s $7 billion investment is the largest ever manufacturing investment at one time by any automotive manufacturer in the U.S. Part of Ford’s more-than-$30 billion investment in electric vehicles through 2025, this investment supports the company’s longer-term goal to create a sustainable American manufacturing ecosystem.”
Ford’s fortunes took a wrong turn almost immediately. It took its two most iconic brands and put them onto EV platforms. The F-150 vehicle, which had been in the US for 42 years, was rebranded the F-150 Lignithing. The Mustang, Ford’s leading sports car since 1965, was turned into a crossover called the Ford Mach-E. Neither sold more than a few thousand units a month. As US EV demand shrank, sales worsened, and Ford retreated from its hugely ambitious EV plans.
The market for people who wanted cars that were not powered completely by gas engines turned to hybrids. Toyota, criticized for not pursuing EVs aggressively, was the leader in this move. Ford repeatedly says it has a strong EV lineup that sells well. In reality, it made its hybrid move late. The fact it sells EVs today was hardly an excuse.
Ford still relies heavily on gas-powered cars, particularly the F-150. That will need to change radically for its stock price to improve.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.