Ford Rewards Investors with 42% Return in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy F?
Source: Fool
- Investor Returns: Ford delivered a total return of 42% for investors in 2025, indicating strong market appeal despite the overall automotive industry's sluggish growth, with positive momentum expected to continue over the next five years.
- Sales Growth Stagnation: The U.S. auto market recorded an annualized sales volume of 15.4 million vehicles in January 2026, matching levels from August 1988, while Ford's auto revenue has only grown at a compound annual rate of 2.2% over the past decade, casting doubt on future growth prospects.
- Challenges in Electric Future: Facing soft demand and significant losses, Ford took a $15.5 billion charge in Q4 related to its electric vehicle strategy, now shifting focus to hybrids and low-cost EVs, with expectations that half of its global volume will come from these models by 2030.
- Valuation Appeal: With a forward price-to-earnings ratio of 9.8, Ford's shares are trading at less than half the S&P 500 average, supporting a substantial dividend yield of 4.29%, suggesting potential positive returns over the next five years, although sustainable earnings growth remains a concern.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.000
Low
11.00
Averages
13.65
High
16.00
Current: 14.000
Low
11.00
Averages
13.65
High
16.00
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.
Ford Rewards Investors with 42% Return in 2025
- Investor Returns: Ford delivered a total return of 42% for investors in 2025, indicating strong market appeal despite the overall automotive industry's sluggish growth, with positive momentum expected to continue over the next five years.
- Sales Growth Stagnation: The U.S. auto market recorded an annualized sales volume of 15.4 million vehicles in January 2026, matching levels from August 1988, while Ford's auto revenue has only grown at a compound annual rate of 2.2% over the past decade, casting doubt on future growth prospects.
- Challenges in Electric Future: Facing soft demand and significant losses, Ford took a $15.5 billion charge in Q4 related to its electric vehicle strategy, now shifting focus to hybrids and low-cost EVs, with expectations that half of its global volume will come from these models by 2030.
- Valuation Appeal: With a forward price-to-earnings ratio of 9.8, Ford's shares are trading at less than half the S&P 500 average, supporting a substantial dividend yield of 4.29%, suggesting potential positive returns over the next five years, although sustainable earnings growth remains a concern.
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- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
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- Sales Growth: Global EV sales surged 21% in 2025, with a notable 33% increase in Europe, indicating strong demand that could enhance market share for related companies.
- China's Market Dominance: EV sales in China grew by 19%, with Tesla holding a 4.4% market share, surpassing Nio, which highlights increasing competitive pressure on Nio in a rapidly consolidating market.
- Challenges for Nio: Nio reported a 15% year-over-year increase in vehicle sales in the latest quarter, yet its net losses reached $488.9 million, indicating a precarious position amid market consolidation and a lack of profitability.
- Rivian's Market Opportunity: Rivian ranks sixth in the U.S. market, achieving an 8% revenue growth in 2025, and while still unprofitable, it is approaching profitability faster than Nio, suggesting a stronger competitive position.
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- Stellantis' Major Shift: Stellantis recorded a $26 billion write-off this month to scrap fully electric models and revive its popular 5.7-liter 'Hemi' V8 engine, resulting in a market value drop of approximately $6 billion, reflecting the urgency of its strategic pivot.
- Ford's EV Setbacks: Ford disclosed a $19.5 billion writedown after canceling its electric F-150 pickup truck, highlighting significant setbacks in its EV strategy and further exacerbating uncertainty in the industry.
- Bleak Market Outlook: Industry executives now expect EVs to account for just 5% of the U.S. new vehicle market—roughly half the current level—demonstrating the substantial impact of policy changes and inadequate infrastructure on the development of electric vehicles.
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Ford Rewards Investors with 42% Return in 2025
- Investor Returns: Ford delivered a total return of 42% for investors in 2025, indicating strong market appeal despite the overall automotive industry's sluggish growth, with positive momentum expected to continue over the next five years.
- Sales Growth Stagnation: The U.S. auto market recorded an annualized sales volume of 15.4 million vehicles in January 2026, matching levels from August 1988, while Ford's auto revenue has only grown at a compound annual rate of 2.2% over the past decade, casting doubt on future growth prospects.
- Challenges in Electric Future: Facing soft demand and significant losses, Ford took a $15.5 billion charge in Q4 related to its electric vehicle strategy, now shifting focus to hybrids and low-cost EVs, with expectations that half of its global volume will come from these models by 2030.
- Valuation Appeal: With a forward price-to-earnings ratio of 9.8, Ford's shares are trading at less than half the S&P 500 average, supporting a substantial dividend yield of 4.29%, suggesting potential positive returns over the next five years, although sustainable earnings growth remains a concern.
See More
Tesla's $20 Billion Investment Reshapes Transportation Market
- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
See More
Analysis of Current Electric Vehicle Market Trends
- Sales Growth: Global EV sales surged 21% in 2025, with a notable 33% increase in Europe, indicating strong demand that could enhance market share for related companies.
- China's Market Dominance: EV sales in China grew by 19%, with Tesla holding a 4.4% market share, surpassing Nio, which highlights increasing competitive pressure on Nio in a rapidly consolidating market.
- Challenges for Nio: Nio reported a 15% year-over-year increase in vehicle sales in the latest quarter, yet its net losses reached $488.9 million, indicating a precarious position amid market consolidation and a lack of profitability.
- Rivian's Market Opportunity: Rivian ranks sixth in the U.S. market, achieving an 8% revenue growth in 2025, and while still unprofitable, it is approaching profitability faster than Nio, suggesting a stronger competitive position.
See More
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- High Dividend Yield: With a dividend yield of 6.6%, significantly above the industry average of 0.0%, Grupo Financiero Banorte is an ideal choice for investors seeking stable income.
- Sustained Growth Potential: Washington Trust Bancorp's current year earnings estimate has increased by 7.3% in the past 60 days, suggesting enhanced profitability that could drive stock price appreciation.
- Attractive Dividends: Washington Trust Bancorp offers a dividend yield of 6.2%, exceeding the industry average of 2.3%, further enhancing its appeal as an investment target.
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- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
Automakers Slash EV Investments Amid $65B Losses
- Severe Industry Losses: The global automotive industry has incurred at least $65 billion in losses over the past year due to significant cutbacks in electric vehicle investments, with executives warning of more pain ahead, indicating a sharp decline in market confidence towards EVs.
- Stellantis' Major Shift: Stellantis recorded a $26 billion write-off this month to scrap fully electric models and revive its popular 5.7-liter 'Hemi' V8 engine, resulting in a market value drop of approximately $6 billion, reflecting the urgency of its strategic pivot.
- Ford's EV Setbacks: Ford disclosed a $19.5 billion writedown after canceling its electric F-150 pickup truck, highlighting significant setbacks in its EV strategy and further exacerbating uncertainty in the industry.
- Bleak Market Outlook: Industry executives now expect EVs to account for just 5% of the U.S. new vehicle market—roughly half the current level—demonstrating the substantial impact of policy changes and inadequate infrastructure on the development of electric vehicles.
See More
