After years of being dogged by a poor stock price, Ford Motor Co. (NYSE: F | F Price Prediction) shares are up 32% this year, compared to 14% for the S&P 500. And the stock has a yield of 4.6%.
Ford’s earnings were fine, neither disappointing nor spectacular. Revenue rose 9% to $50.5 billion. Per share earnings increased from $o.22 to $0.60.
Although Ford has set a recall record this year that may never be broken, the talk about warranty damage to the bottom line has quieted down.
No More EVs?
The one thing the market is besotted with is the company’s pullback from electric vehicles (EVs). Although CEO Jim Farley has expressed tremendous anxiety about Chinese EVs, he has lost the temptation to chase the Chinese. For the time being, tariffs are holding that competition in check. Ford has apparently given up future walking.
Part of giving up future walking is to admit, publicly or not, that much of Ford’s investment in EVs was a mistake. Plans for selling hundreds of thousands of EVs in the United States is no longer part of the Ford discussion. The Wall Street Journal has reported that the company will end the manufacture of its EV flagship, the F-150 Lightning. Dealers will not miss them. Ford is not alone in the problem of EV sales. Legacy car companies that hoped the U.S. market would be a success have found it was not.
Ford’s gasoline-powered business in the U.S. is as healthy as any other car company. It has 13% of the market. As people turn away from EVs, they turn toward fossil fuels. And the rate at which they will eventually turn back toward EVs is uncertain.
Through the first 10 months of this year, U.S. sales for Ford have risen 6.6% to 1,834,492. Sales of its workhorse F-Series were up 11.4% to 688,510.
Necessity is the mother of invention. Ford has reinvented itself as one of the premier fossil fuel-based companies in the world.
Ford Stock Price Prediction and Forecast 2025–2030
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