Ford Motor Company's Strategic Shift in Electric Vehicle Market

Goldman Sachs pulled back its bullish stance on Ford (NYSE:F), downgrading the stock from Buy to Neutral and lowering the price target to $9 from $11. As a result, the company’s shares dropped more than 3% on Thursday.

The move reflects growing concern over the automaker’s earnings outlook and macroeconomic challenges.

The firm acknowledged that its previous optimism on Ford’s cyclical momentum was misplaced. Since being added to Goldman’s Buy list in September 2024, Ford’s projected 2025 earnings per share have been slashed by 32%, outpacing the stock’s 10% decline over the same period.

Goldman notes that while the share price has held up better than earnings revisions might suggest, this could be due to improved investor sentiment, successful cost-cutting initiatives, and Ford’s domestic manufacturing presence that may help cushion the impact of rising tariffs.

Despite some positives—such as Ford’s progress on expense management and its positioning in the U.S. for potential tariff-related advantages—Goldman now sees a tougher environment ahead. The firm points to increasing global competition, softening consumer demand, and the likelihood of escalating costs from new tariffs as factors weighing on Ford’s ability to regain traction.

Goldman still sees potential in Ford’s long-term push into software and services, but the timing of that transformation remains uncertain. Without clear signs of a near-term earnings inflection or stronger cyclical recovery, the firm has chosen to step to the sidelines, citing an unfavorable risk-reward balance at current valuation levels.

Goldman Sachs pulled back its bullish stance on Ford (NYSE:F), downgrading the stock from Buy to Neutral and lowering the price target to $9 from $11. As a result, the company’s shares dropped more than 3% on Thursday.

The move reflects growing concern over the automaker’s earnings outlook and macroeconomic challenges.

The firm acknowledged that its previous optimism on Ford’s cyclical momentum was misplaced. Since being added to Goldman’s Buy list in September 2024, Ford’s projected 2025 earnings per share have been slashed by 32%, outpacing the stock’s 10% decline over the same period.

Goldman notes that while the share price has held up better than earnings revisions might suggest, this could be due to improved investor sentiment, successful cost-cutting initiatives, and Ford’s domestic manufacturing presence that may help cushion the impact of rising tariffs.

Despite some positives—such as Ford’s progress on expense management and its positioning in the U.S. for potential tariff-related advantages—Goldman now sees a tougher environment ahead. The firm points to increasing global competition, softening consumer demand, and the likelihood of escalating costs from new tariffs as factors weighing on Ford’s ability to regain traction.

Goldman still sees potential in Ford’s long-term push into software and services, but the timing of that transformation remains uncertain. Without clear signs of a near-term earnings inflection or stronger cyclical recovery, the firm has chosen to step to the sidelines, citing an unfavorable risk-reward balance at current valuation levels.

Ford Motor (NYSE:F) was hit with a downgrade by Bernstein SocGen Group, which adjusted its rating on the stock from Market Perform to Underperform and slashed its price target from $9.40 to $7. The move reflects growing anxiety over the impact of recently implemented vehicle tariffs and the likelihood of additional tariffs on auto parts in the near future.

Bernstein's latest analysis indicates that these trade policy shifts could deal a substantial blow to Ford’s financial outlook. The firm estimates a more than 35% hit to free cash flow, while adjusted earnings projections for 2025 and 2026 have been sharply reduced—by over 41% and 36%, respectively.

Beyond the direct cost of tariffs, the downgrade also factors in a broader deterioration in consumer sentiment, which could weigh on vehicle demand. As the economic and political environment becomes more volatile, Bernstein believes the current valuation fails to fully reflect the downside risks Ford is facing.

With the stock already underperforming and trade-related pressures building, Bernstein expects further weakness and advises investors to brace for a rougher road ahead.

Ford Motor (NYSE:F) was hit with a downgrade by Bernstein SocGen Group, which adjusted its rating on the stock from Market Perform to Underperform and slashed its price target from $9.40 to $7. The move reflects growing anxiety over the impact of recently implemented vehicle tariffs and the likelihood of additional tariffs on auto parts in the near future.

Bernstein's latest analysis indicates that these trade policy shifts could deal a substantial blow to Ford’s financial outlook. The firm estimates a more than 35% hit to free cash flow, while adjusted earnings projections for 2025 and 2026 have been sharply reduced—by over 41% and 36%, respectively.

Beyond the direct cost of tariffs, the downgrade also factors in a broader deterioration in consumer sentiment, which could weigh on vehicle demand. As the economic and political environment becomes more volatile, Bernstein believes the current valuation fails to fully reflect the downside risks Ford is facing.

With the stock already underperforming and trade-related pressures building, Bernstein expects further weakness and advises investors to brace for a rougher road ahead.

Ford Motor Company, trading under the symbol "F" on the NYSE, is a major player in the automotive industry, known for its wide range of vehicles, including cars, trucks, and SUVs. The company faces competition from other automotive giants like General Motors and Toyota. Recently, Piper Sandler updated its rating for Ford to Neutral, maintaining a hold action, with the stock priced at $10.25.

The stock's current price reflects a 2.5% increase, translating to a gain of $0.25. Throughout the day, the stock fluctuated between $10.01 and $10.25. Over the past year, Ford's stock has seen a high of $14.85 and a low of $9.06. The company's market capitalization is approximately $39.9 billion, with a trading volume of 102.6 million shares.

Ford is currently under scrutiny as federal regulators investigate approximately 1.3 million Ford F-150 trucks from model years 2015 to 2017. The National Highway Traffic Safety Administration (NHTSA) has received 138 complaints about these vehicles unexpectedly downshifting at high speeds, leading to rapid deceleration and potential crashes.

This investigation follows Ford's recent recall of over 240,000 Explorer models due to improperly secured seatbelts. The F-150 probe highlights significant safety concerns, as this model is one of Ford's most popular. The sudden downshift issue can cause the rear wheels to lock temporarily, complicating vehicle control and increasing the risk of accidents.

Ford Motor Company, trading under the symbol "F" on the NYSE, is a major player in the automotive industry, known for its wide range of vehicles, including cars, trucks, and SUVs. The company faces competition from other automotive giants like General Motors and Toyota. Recently, Piper Sandler updated its rating for Ford to Neutral, maintaining a hold action, with the stock priced at $10.25.

The stock's current price reflects a 2.5% increase, translating to a gain of $0.25. Throughout the day, the stock fluctuated between $10.01 and $10.25. Over the past year, Ford's stock has seen a high of $14.85 and a low of $9.06. The company's market capitalization is approximately $39.9 billion, with a trading volume of 102.6 million shares.

Ford is currently under scrutiny as federal regulators investigate approximately 1.3 million Ford F-150 trucks from model years 2015 to 2017. The National Highway Traffic Safety Administration (NHTSA) has received 138 complaints about these vehicles unexpectedly downshifting at high speeds, leading to rapid deceleration and potential crashes.

This investigation follows Ford's recent recall of over 240,000 Explorer models due to improperly secured seatbelts. The F-150 probe highlights significant safety concerns, as this model is one of Ford's most popular. The sudden downshift issue can cause the rear wheels to lock temporarily, complicating vehicle control and increasing the risk of accidents.

Ford Motor (NYSE:F) saw its shares drop over 6% in pre-market today after issuing a downbeat profit forecast for 2025, overshadowing its better-than-expected fourth-quarter results.

The automaker anticipates adjusted earnings before interest and taxes (EBIT) of $7 billion to $8.5 billion for 2025, a sharp decline from the $10.2 billion reported in 2024. Ford cited ongoing market pressures as key headwinds and warned that the first half of the year would be particularly challenging.

The company expects first-quarter EBIT to hover around breakeven, attributing the weakness to lower wholesales and a shift toward producing less profitable vehicles. Additionally, major production transitions at key U.S. plants in Kentucky and Michigan are expected to weigh on early-year performance.

Despite the cautious outlook, Ford wrapped up 2024 on a high note, delivering fourth-quarter earnings that beat expectations. The company posted adjusted earnings per share of $0.39 on revenue of $48.2 billion, exceeding analysts’ forecasts of $0.36 per share on $47.79 billion in revenue.

While Ford’s long-term strategy remains focused on adapting to shifting consumer demand and production realignments, investors appear wary of the near-term profitability squeeze and broader economic uncertainties.