Ford Shifts EV Strategy, Focuses on Hybrids
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy F?
Source: Benzinga
- EV Production Halt: Ford has ceased production of several electric vehicles, with CEO Jim Farley admitting that an overemphasis on EV unit growth has hurt profitability, leading the company to refocus on hybrids and gas-powered vehicles to enhance profit margins.
- Market Response and Pricing: Farley noted that the COVID-19 pandemic misled automakers into raising vehicle prices by 30% to 40%, while Ford lost money on every F-150 Lightning sold, which became the best-selling electric pickup in the U.S. in 2025 with 27,307 units sold.
- China Market Warning: Farley highlighted the rapid advancements in the Chinese automotive market, emphasizing the need for Ford to remain vigilant against competitors, particularly in the realms of software and electric vehicles, where Chinese designs and technologies are increasingly superior.
- Future Strategic Planning: Ford is set to launch a new modular EV platform in 2027, targeting a price point of $30,000, with Farley aiming to disrupt the electric vehicle segment again by implementing a different strategy to reshape Ford's market position.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 11.680
Low
11.00
Averages
13.65
High
16.00
Current: 11.680
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.
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- Weak Truck and SUV Sales: Truck sales dropped 11.3% and SUV sales fell 7.8%, suggesting weakened showroom traffic for core models, which could lead to continued low sales and affect overall revenue.
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- Entry-Level Model Sales Growth: Despite the overall sales decline, Ford's entry-level models, including the Maverick, Ranger, and Bronco Sport, saw an 8.4% increase in sales, indicating some success in addressing consumer demand for lower-priced options.
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- Ford's Dividend Advantage: Ford offers a quarterly dividend of $0.15, yielding 5%, and plans to distribute 40% to 50% of its annual free cash flow to shareholders, with a special dividend of $0.65 in 2023 due to the sale of its Rivian stake, enhancing its appeal to investors.
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- Surge in Supply: By 2028, around 800,000 EVs are projected to hit the used market, leading to oversupply and further price depreciation, which may put additional financial strain on leasing companies.
- Tesla's Market Dominance: Tesla's leasing volume is substantial, with nearly 229,000 EVs leased last year, far exceeding the combined totals of General Motors and Ford, highlighting its strong influence in the industry.
- Financial Management Strategy: Despite industry challenges, Tesla mitigates its financial risk by managing a portion of its lease portfolio through partnerships with third-party lenders, allowing investors to remain cautiously optimistic while monitoring market developments in the coming years.
See More
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- Leasing Market Risks: Tesla is expected to see a wave of off-lease EVs flooding the market in the coming years, with industry experts projecting these vehicles to return at values approximately $10,000 lower than anticipated, potentially costing the industry about $8 billion.
- Depreciation Trends: According to Cox Automotive, by 2025, a three-year-old EV will maintain only about 40% of its original value at auction, a significant drop from 90% in early 2022, indicating pressure on the used EV market.
- Tesla's Market Dominance: Tesla dominates the EV leasing market, having leased nearly 229,000 vehicles last year, which is significantly more than the combined total of General Motors and Ford, highlighting its strong industry influence.
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- Retail Sector Adaptation: While large retailers like Walmart have emerged relatively unscathed, smaller businesses have been severely impacted, with Home Depot aiming to limit purchases from any single country to 10% to reduce dependency and enhance supply chain flexibility.
- Automotive Industry Cost Surge: Automakers such as General Motors and Toyota are facing tariff impacts estimated at up to $9.5 billion, and although the Trump administration has taken steps to alleviate overlapping tariffs, overall costs remain significant, forcing companies to reassess their supply chain strategies.
- Pharmaceutical Sector Stability: Pharmaceutical companies have secured three-year tariff exemptions through pricing agreements with Trump, although new tariffs impose 100% on companies that do not reach agreements, the overall industry is still striving to increase investments in U.S. manufacturing.
See More
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See More
