The market is down over 10% in the past five days, and Ford Motor Co. (NYSE: F | F Price Prediction) stock is down 4%. Over the past month, the market is almost 11% lower and its shares are flat. Ford also has a 7.3% forward yield. Ford, once among the world’s least successful large car companies, has become a safe haven. Its yield percentage is among the highest of all large U.S. public corporations.
Ford’s businesses have several advantages. Among the most important is that 80% of its consumer vehicles are assembled in America. That means tariffs will not bruise its assembly costs by as much as they will General Motors and most foreign car makers. Therefore, Ford’s margins should be hit less than the competition’s.
Ford has also launched a program that should strengthen its cash position in the short term. It announced it will offer new cars for the same price as it gives its employees. Called “From America, for America,” the program will be in place from April 3 to June 2. According to the company, it offers “significant savings” on a number of 2024 and 2025 gasoline, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles.
The company is offering the discount from a position of strength. It sold 189,165 vehicles in March, up 10% from a year before. Sales of its flagship F-series were up 40% to 69,354. The pickup is extremely profitable.
There is also a chance that Tesla’s U.S. problems could help Ford sell electric vehicles (EVs). Ford said it will lose $5.o billion to $5.5 billion in its EV business this year. Ford’s share of the U.S. EV market was 7.9% in 2024. That put it only behind Tesla, which has a share of 48.6%. Protests against Tesla CEO Elon Musk could significantly change the EV market and could shift demand away from Tesla.
Based on today’s market open, the U.S. equity sell-off will continue. One of the few places investors have turned so far is Ford.
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