Ford Projects $19.5 Billion Loss Due to EV Program Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- EV Program Loss: Ford announced an estimated $19.5 billion loss due to the comprehensive restructuring of its EV program, which will directly impact the company's earnings for the upcoming quarters, particularly in Q4 FY2025 and throughout FY2026.
- Recall Crisis Intensifies: In 2025, Ford became the leading automaker in the U.S. for recalls, accounting for 35% of total recalls, resulting in warranty costs reaching $2.8 billion in the first two quarters of 2025, further squeezing profit margins.
- Bleak Earnings Outlook: With a trailing P/E ratio of 11.4, significantly lower than the S&P 500's 31.2, Ford's stock reflects market pessimism regarding its future profitability, prompting investors to approach the stock with caution.
- Rising Warranty Costs: Although Ford reduced warranty expenses by $459 million in Q3 2025, ongoing recalls and a new recall announcement suggest that this improvement may be temporary, leaving persistent earnings pressures ahead.
F
$13.31+Infinity%1D
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: 13.360
Low
10.00
Averages
12.46
High
15.00
Current: 13.360
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.
