Ford’s stock took a major hit after the company reported a staggering $5.1 billion loss in its electric vehicle (EV) division for 2024.
The automaker’s forecast for 2025 isn’t looking any better, with losses expected to range between $5 billion and $5.5 billion. Investors are rattled, and Wall Street isn’t happy.
Ford’s Earnings Report: A Mixed Bag
While Ford managed to beat Wall Street expectations on revenue and earnings per share in Q4, the future doesn’t look too bright. The company posted revenue of $48.2 billion, up 5% year-over-year, and an EPS of 39 cents. But the downward trajectory of its EV segment is what’s stealing the headlines.
Jim Farley’s Warning on Tariffs
CEO Jim Farley didn’t sugarcoat the impact of the Trump administration’s proposed tariffs on auto manufacturing. He warned that a potential 25% tariff on vehicles imported from Canada and Mexico could “wipe out billions in industry profits” and lead to higher prices for customers. This adds another layer of uncertainty to Ford’s future.
Why Ford’s EV Strategy Is Struggling
The EV market has become a brutal battlefield, with companies slashing prices to stay competitive. Ford’s Model e division, which was supposed to be its electric future, is now turning into a financial black hole. With Tesla, Rivian, and Chinese automakers like BYD aggressively pricing their EVs, Ford is struggling to keep up.
Ford’s Stock Drops Over 6%
The market reacted swiftly, sending Ford’s stock tumbling more than 6% in early Thursday trading. Over the past year, the automaker has lost more than 20% of its market value, reflecting growing investor concerns over its EV strategy and global trade uncertainty.
Ford is at a crossroads. It’s pouring billions into EV development, yet the returns aren’t coming fast enough. With mounting losses, stiff competition, and now the potential threat of tariffs, the automaker faces tough choices ahead.
Ford’s EV ambitions are proving to be a costly experiment, and investors are losing patience. The company needs a game-changing strategy to turn things around before the market confidence erodes further. For now, all eyes are on Ford’s next moves as it navigates a turbulent 2025.
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