Ford Down 8% in Past 2 Years vs S&P 500 Up 129%

By Douglas A. McIntyre Published Oct 21, 6:40AM EDT

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Ford Down 8% in Past 2 Years vs S&P 500 Up 129% — © jetcityimage / iStock Editorial via Getty Images

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Ford Motor Co. (NYSE: F | F Price Prediction) stock has far underperformed competitors and the broad market in the past two years.
There are two main reasons for that.
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The S&P 500 has been on a run recently, rising 56% in two years. Shares of Ford Motor Co.’s (NYSE: F) crosstown rival General Motors Co. (NYSE: GM) are up 40%. Yet, Ford stock is down 9% in the same period. What happened?

Two things have battered Ford. The first is what it said but shouldn’t have. Management claimed it would invest $30 billion into electric vehicles (EVs) to become the U.S. market leader. In June 2022, it said it would nearly double production of its F-150 Lightning, its EV flagship, to 150,000 in two years. Kumar Galhotra, president of Ford’s Americas & International Markets Group, commented at the time, “With nearly 200,000 reservations, our teams are working hard and creatively to break production constraints to get more F-150 Lightning trucks into the hands of our customers.” Today, Ford sells a few of the pickups a month. By late last year, it had cut that delivery forecast to 1,600 a week for 2024.

The second thing was warranty problems. Ford’s latest earnings announcement included a jump in warranty issues that caused a $800 billion increase. The company had promised better numbers and a large increase in quality after years in which consumers and investors waited.

Ford is a good example of how investors become disappointed in results that management keeps promising and then misses.

Ford Price Prediction and Forecast 2025-2030

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.