Ford shares are hitting the brakes after weak forecast and a tariff-y year ahead
Ford shares skidded today after it forecast less profitability in the year ahead and said it expects its EV business to lose between $5 billion and $5.5 billion again this year.
If the outlook proves true, 2025 would mark the third straight year of Ford’s EV biz losing about $1 billion a quarter.
The stock was recently down 6.9%, which would be its biggest drop since late October, according to FactSet.
Addressing tariffs, which have sent auto stocks on a bumpy ride this week, Ford CEO Jim Farley confirmed investor fears.
“There is no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry with billions of dollars of industry profits wiped out and adverse effect on the US,” Farley said on the company’s earnings call, adding that customers would see higher prices.
Expected tax policy changes, like President Trump’s desire to cancel the $7,500 EV tax credit, will also likely squeeze Ford and other carmakers. Analysts say Ford and GM rely on the credits more than rival Tesla.
The stock was recently down 6.9%, which would be its biggest drop since late October, according to FactSet.
Addressing tariffs, which have sent auto stocks on a bumpy ride this week, Ford CEO Jim Farley confirmed investor fears.
“There is no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry with billions of dollars of industry profits wiped out and adverse effect on the US,” Farley said on the company’s earnings call, adding that customers would see higher prices.
Expected tax policy changes, like President Trump’s desire to cancel the $7,500 EV tax credit, will also likely squeeze Ford and other carmakers. Analysts say Ford and GM rely on the credits more than rival Tesla.
