Huge Sell-Off Has Cut Ford Shares by Half

By Douglas A. McIntyre Published Feb 14, 9:15AM EST

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Ford Motor Co. (NYSE: F) stock has sold off sharply since early 2022.
The automaker is under siege from Chinese competition, losses on electric vehicles, and tariffs.

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Huge Sell-Off Has Cut Ford Shares by Half — © solarseven / iStock via Getty Images

Ford Motor Co. (NYSE: F | F Price Prediction) shares sold for about $25 apiece in early 2022. Recently, they dropped near their 52-week low of $9.10. What was a promising move into electric vehicles (EVs) has turned out to be multi-billion-dollar losses. Its sales and profits in China, the world’s largest car market, are shaky. CEO Jim Farley said, “So far, what we’re seeing is a lot of cost and a lot of chaos,” referring to tariffs and the new administration’s plans to help U.S. manufacturers.

Ford’s most recent challenges could substantially undermine its financial situation. According to S&P Global Mobility, tariffs on cars and car parts from Mexico and Canada could increase the prices of new vehicles in the United States by as much as 20%.

Ford will continue to post EV losses in 2025, which may be more than the $5.1 billion it lost last year. In 2021, Ford said it would spend over $30 billion on its EV development by 2025. In 2022, Ford said it expected to reach an annual rate of building EVs at 600,000 by late 2023. Last month, total Ford EV sales in the United States were 5,666.

Ford earned $600 million in China last year. However, Ford will be one of the companies hit hardest by Chinese competition. According to Bloomberg: “As the US and China square off over everything from tech to military might, Ford Motor Co. has emerged as the American firm most at risk from its exposure to the world’s No. 2 economy, according to Strategy Risks, beating the likes of Apple Inc. and Tesla Inc.”

Finally, Farley recently said that if inexpensive Chinese EVs entered the U.S. market, it would severely damage his company. He described Chinese car companies as an “existential threat.”

Ford is under siege. And escaping that position will be a monumental task.

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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.