Ford shares fall 12% after earnings underline worries about costs and EV plans (2024)

FAQs

Did Ford lose money on EVs? ›

And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit.

Key Points. Ford has a poor track record when it comes to growing shareholder wealth. Management is confident in the automaker's ability to increase revenue. But Ford still faces intense competition, low margins, and low growth.

(Reuters) -Shares of Ford Motor Co closed down 12.3% on Friday, after the automaker reported a wider loss from its electric-vehicle (EV) business due to pressures from a price war, sparked by industry leader Tesla.

That's double compared to last year, as per one of the sources, and the company has forecast total losses of up to $5.5 billion for its electric vehicle unit in 2024. By comparison, that's almost as much as the profit expected to be made by the company's internal combustion vehicle division, Ford Blue.

Still, Ford is grappling with what CEO Jim Farley called "a huge drag not just on Ford, but on our whole industry": electric vehicle production. The carmaker recorded a $1.3 billion operating loss for its EV and software division in the first quarter.

Ford focuses on hybrids, delays launches, and addresses quality issues. Ford Motor Co is reportedly losing whopping $100,000 per every electric vehicle. According to Bloomberg, Ford has begun cutting orders from battery suppliers to stem the losses.

Ford Motor Company - Hold

Valuation metrics show that Ford Motor Company may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of F, demonstrate its potential to outperform the market. It currently has a Growth Score of D.

With its 4-star rating, we believe Ford's stock is undervalued compared with our long-term fair value estimate. We are maintaining our fair value estimate at $19 per share. We think buying Ford's stock may require investor patience as management restructures the Ford Blue segment while scaling up the Model e business.

The highest analyst price target is $21.00 ,the lowest forecast is $10.00. The average price target represents 23.05% Increase from the current price of $12.28. Ford Motor's analyst rating consensus is a Moderate Buy. This is based on the ratings of 10 Wall Streets Analysts.

Ford to delay all-electric SUV, truck to focus on offering hybrid vehicles across its lineup by 2030. Ford Motor is delaying production of an all-electric SUV and pickup truck. The automaker is instead focusing on offering hybrid options across its entire North American lineup by 2030.

Is Ford in huge debt? ›

The Ford Motor Company reported total debt around 149.2 billion U.S. dollars in 2023. Total debt comprises automotive debt, credit debt, and other debt.

Ford's Model e EV division reported a net revenue of around $100,000,000 in the first quarter. Adding in expenses, though, the Blue Oval's EV arm lost $1.3 billion for the quarter. Ford largely blames margin-cutting price cuts for the massive drop in revenue compared to Q1 2023.

Ford Motor is delaying production of a new all-electric three row SUV, as it shifts to offer hybrid options across its entire North American lineup by 2030.

Ford Motor Price: 11.99 for May 10, 2024.

Stock Price Forecast

The 13 analysts with 12-month price forecasts for Ford Motor Company stock have an average target of 14.18, with a low estimate of 10 and a high estimate of 20. The average target predicts an increase of 15.47% from the current stock price of 12.28.

Demand for EVs is nowhere close to projections so car makers are slashing production. Ford will shut down one of two production shifts in April at the Dearborn, Michigan, factory that builds the F-150 Lightning electric pickup.

US report finds that added costs of making electric vehicles are making it hard for manufacturers to turn a profit. Car manufacturers are losing $6000 on every electric car they sell, according to a new report from the United States.

Ford is looking especially good, with year-to-date sales through April of 28,252 EVs, an increase of 97 percent from the same period last year. That makes Ford the country's second-leading EV brand, although Tesla still outsells Ford's EVs at a rate of about seven to one.

Automakers are losing thousands of dollars on every EV they sell, and for the most part not meeting consumer expectations for the vehicles, according to Boston Consulting Group.