Is Ford Stock Worth Buying Now on its EV Strategy Shift?
At this point, it's worth asking whether it makes sense to buy Ford stock now. But first, let's look at why the company needed a strategy shift and what's included in its new plan.
Ford's New Play: Affordable EVs
Ford's latest plan centers around the new Ford Universal EV Platform, which will underpin a family of lower-cost electric models. The first in line will be a midsize, four-door electric pickup, with an expected starting price of around $30,000. Production will take place at the Louisville Assembly Complex in Kentucky, backed by a $5 billion investment that will add nearly 4,000 jobs. Deliveries of the model are slated to begin in 2027.
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Ford CEO Jim Farley has called the company's new affordable EV push its next 'Model T moment.' Alongside the new pickup, Ford is delaying its large electric truck and van to 2028. Meanwhile, it's deepening focus on lithium iron phosphate (LFP) batteries, which will be assembled in the United States. This is a first for any automaker in America and should help reduce costs while freeing up vehicle interior space.
The new platform streamlines production. Ford says it reduces parts by 20%, fasteners by 25%, and plant workstations by 40%, cutting assembly times by about 15%. These efficiencies are crucial for keeping the $30,000 target price realistic — especially with shifting U.S. EV policies under President Donald Trump, including the planned end of EV tax credits after Sept. 30.
Why Ford's EV Business Needed a Rejig
In 2021, Ford made headlines with the Mustang Mach-E, followed by the F-150 Lightning and an electric van a year later. The quick rollout initially put it ahead of other legacy automakers like General Motors GM. But as EV sales growth slowed, material costs soared, and Tesla TSLA began aggressive price cuts, Ford's EV business started looking less appealing.
Ford's electric vehicle business has been a drag on its bottom line. Over the past two and a half years, the division has racked up roughly $12 billion in losses, including $2.17 billion in just the first half of this year.
In contrast, General Motors took a slower, more methodical path to EV production. It focused on developing standardized batteries to lower costs and formed joint ventures that quickly built battery plants. As a result, General Motors sold over 46,000 EVs in the second quarter (second only to Tesla)— more than double Ford's total — and now offers more than 10 electric models, ranging from the $35,000 Chevrolet Equinox EV to the $130,000 Cadillac Escalade IQ.
Meanwhile, Chinese companies like BYD Co Ltd BYDDY have surged ahead globally. BYD now sells more EVs than any Western manufacturer, producing them at a fraction of the cost and putting pressure on U.S. automakers to rethink their strategies. In fact, BYD dethroned Tesla in EV sales for the third straight quarter in battery EV sales in the second quarter of 2025.
Tariffs & Recalls to Weigh on Ford
Ford's challenges extend beyond EV losses. The company has faced costly recalls and repairs on its gasoline-powered lineup, denting profits from its core truck and SUV business.
Tariffs are another growing headache. In the second quarter alone, Ford absorbed $800 million in tariff-related costs. It now expects a net $2 billion tariff hit for 2025, up from earlier forecasts. The gross impact could be as high as $3 billion, though Ford aims to offset $1 billion through cost-cutting measures.Notably, Ford has been leading the auto industry in recalls so far in 2025.
These headwinds contrast with GM's steadier profitability in recent years and highlight how far Ford must go to stabilize its earnings. And while BYD's low-cost manufacturing model poses a serious threat in global markets, it also sets a benchmark Ford will need to match or beat if it hopes to gain share internationally.
F Not Without Strengths
It's not all bad news. Ford's Pro division, which serves commercial and government fleets, continues to perform well. Hybrid sales are growing, giving Ford a hedge as EV adoption slows. The company also boasts a strong balance sheet and an attractive dividend yield, appealing to long-term income-focused investors.
The Zacks Rundown on Ford Stock
Shares of Ford have increased around 10% over the past year, underperforming the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, F trades at a forward price-to-earnings ratio of 0.27, below the industry average. It carries a Value Score of A.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Ford's earnings has been revised over the past 60 days.
Image Source: Zacks Investment Research
The Bottom Line on Ford
Ford's new EV strategy has potential, especially if it can deliver a $30,000 electric pickup with decent margins. The shift to U.S.-made LFP batteries and streamlined production is a smart response to rising costs and fierce competition from Tesla, GM and BYD. But the benefits are still years away.
Also, lest we forget, the company has scaled back some of its earlier EV ambitions, pausing one of four planned battery plants. CEO Jim Farley has, in fact, warned that there are 'no guarantees' the new manufacturing approach will succeed. For now, the focus is on proving the economics of its affordable EV program before scaling further.
For new investors, it may be too soon to jump in. The stock could gain momentum once Ford shows real progress in executing its affordable EV plans and improving profitability. Until then, patience may pay off. Existing shareholders, however, can take comfort in Ford's dividend and long-term prospects — provided they're willing to weather some short-term bumps along the way.
F stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
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