Ford Announces $19.5 Billion EV-Related Charges, Plans 50% EV Production by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13h ago
0mins
Source: Fool
- EV-Related Charges: Ford announced it will incur $19.5 billion in EV-related charges, with approximately $5.5 billion in cash expenditures, significantly impacting 2026 results while still achieving $2.9 billion in profits during the first nine months of the year.
- Strategic Shift in EV Production: By 2030, Ford plans to increase the production of hybrids, extended-range EVs, and electric vehicles to 50% of its total output from just 17% today, indicating a strategic refocus in the electric vehicle market.
- New Business Expansion: Ford is repurposing its battery plants in Kentucky and Michigan to produce stationary batteries for AI data centers, with production expected to start in mid-2027, potentially adding $2.5 billion to annual revenue from 20 GWh of output.
- Future Profit Expectations: Ford anticipates that its loss-making Model e EV segment will become profitable by 2029 and begin to grow in 2030, reflecting the company's confidence in long-term growth potential in the EV market.
Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 12.46 USD with a low forecast of 10.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 14.400
Low
10.00
Averages
12.46
High
15.00
Current: 14.400
Low
10.00
Averages
12.46
High
15.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
