GM and Ford Warned to Consider Exiting China Amid EV Price War
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- Intensifying Competition: According to the China Association of Automobile Manufacturers, China's exports of full-electric vehicles surged 67% to 1.65 million in 2025, indicating a growing competitiveness of domestic brands in the global market, putting foreign automakers under increased pressure.
- Tesla's Market Share Decline: Tesla's sales fell 16% in Q4 2025 and 9% for the full year, losing its position as the world's largest EV seller, reflecting multiple challenges including an aging product lineup and consumer backlash.
- Ford's Production System Innovation: Ford plans to debut its Universal EV Production System with a new midsize electric truck priced around $30,000, aiming to reduce production costs and complexity by assembling front, rear, and battery components simultaneously on three parallel lines.
- Strategic Partnership Exploration: Detroit automakers are exploring collaborations with companies like BYD to reduce costs and access technology, indicating a strategic shift to adapt to the competitive landscape in the EV market.
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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 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 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.
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 Anticipates $600M Loss in Q4 2025 Due to Pension Remeasurement
- Pension Loss Expectation: Ford anticipates a pre-tax remeasurement loss of $600 million in Q4 2025 related to pension and OPEB plans, with half of this loss tied to U.S. pension plans, indicating significant pressure on the company's pension management.
- Net Income Impact: This loss is expected to decrease Ford's Q4 net income by approximately $500 million on an after-tax basis, although it will not affect the company's adjusted EBIT as it is classified as a special item, reflecting the complexity of the company's financial situation.
- Pension Funding Status: By year-end 2025, Ford expects the underfunded status of its pension and OPEB plans to be around $200 million and $4.4 billion, respectively, an improvement from $500 million and $4.4 billion at year-end 2024, indicating progress in pension management.
- Earnings Report Schedule: Ford is set to release its fourth-quarter results after the market close on February 10, and investors should pay close attention to the detailed explanations regarding pension losses and their potential impact on future finances.
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Rivian's Electric Vehicle Outlook Analysis
- Production Target Miss: Rivian produced only 24,337 vehicles in 2022, significantly below its target of 50,000, leading to severe supply chain issues and substantial losses that undermined market confidence.
- Delivery Volume Recovery: In 2023, Rivian doubled its production to 57,232 vehicles and delivered 50,122, indicating a gradual recovery in production capacity after overcoming supply chain challenges, enhancing future growth potential.
- Future Outlook: Although production is expected to dip to 49,476 vehicles in 2024, deliveries are projected to rise to 51,579, suggesting sustained market demand amid adversity, with growth anticipated from the upcoming R2 model launch.
- Revenue Growth Expectations: Analysts forecast Rivian's revenue to grow at a 31% CAGR from 2024 to 2027, and if it successfully meets targets and expands market share, its stock could rise sixfold over the next five years, showcasing strong investment potential.
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