Ford F currently has three models in its electric vehicle lineup —Mustang Mach-E SUV, F-150 Lightning pickup truck and E-Transit van. The company reported that in the second quarter, its EV sales plunged 31.4%. EV deliveries dropped from 23,957 units in the same period last year to 16,438 units this year. The slump was mainly due to a recall and a further halt in Mustang Mach-E deliveries.
Mustang Mach-E’s software glitch in electronic door latches posed serious risks of getting trapped inside or left outside the car. While a software update to fix this is expected to come out in the third quarter, the second quarter witnessed the recall, causing a setback to more than 317,000 vehicles globally. Another reason for such a sharp decline was Ford’s prep for the model year 2025, causing factory shutdowns and resultant inventory shortages for all three EVs.
Ford sold 5,842 F-150 Lightning trucks in the second quarter, marking a 26% decline compared with second-quarter 2024. Mustang Mach-E sales dropped 19.5% to 10,178 units, while E-Transit sales plunged 87.7%, with just 418 units sold.
The troublesome conditions of its EV segment have led Ford to reconsider strategy and refocus on affordability. Ford is on its way to bring out a new lineup of EVs, beginning at prices lower than $30000. It is set to be launched in 2027. The loss in momentum also draws eyes toward Ford’s exposure to tariffs, as only 13% of its top-selling model, Mustang Mach-E, is U.S. content. With an existing stop sale order and tariff woes looming, its best-selling EV is anticipated to face a big hit.
Ford’s broad lineup of electrified hybrids stands to rescue with a record sale of 156,509 units in the first half of 2025, powering its U.S. vehicle sales to grow 14.7%.
Peer Comparison
General Motors Company (GM), the American automaker giant, witnessed a strong second-quarter sales growth of 111% of EVs compared with the previous-year quarter. It now has a lineup of 11 EV models, of which Chevrolet has displayed the highest growth of 134% in the H1 sales, led by Equinox EV, which has secured General Motors’ place among the top three best-selling EVs. Similarly, Cadillac emerged as the luxury EV market share leader in the second quarter. General Motors boasts an EV market share of 16%.
Tesla, Inc. (TSLA), the pioneer in EV technology, has seen deliveries shrink in the second quarter as it struggles with a dated lineup, expensive pricing and the controversial politics. It reported 384,122 vehicle deliveries. The figure declined 14% from Tesla’s year-ago level of 443,956. This was the second consecutive quarter that Tesla witnessed double-digit declines.
The Zacks Rundown for Ford
Shares of Ford have lost around 1.9% over the past year compared with the industry’s decline of 2.1%.
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From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.29, down from the industry average. It carries a Value Score of A.
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Take a look at how Ford’s EPS estimates have been revised over the past 30 days.
Image Source: Zacks Investment Research
Ford 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
