News about Ford

Ford's model e unit lost $919 million before interest and taxes in fiscal Q2 2026 on revenue of $1 billion, and management expects a full-year 2026 loss of about $4 billion, though the loss improved 31% during the quarter even as revenue declined. Ford Blue and Ford Pro are projected to earn a combined $12 billion to $13 billion in EBIT, and Ford raised its adjusted EBIT guidance to $10 billion to $11 billion. The shares trade at 0.264 times trailing sales versus 3.1 times for the S&P 500, and from July 20 to October 16, 2026, Ford fell 10.2% including dividends while the S&P 500 returned 3.2%. Management warned of launch costs in 2027 for Ford Energy and its universal EV platform, and said it is too early to tell whether EBIT will rise that year.

Ford shares are down 6% in 2026 as of October 15 and trade under $15, but the article argues investors should be cautious. It says Ford's Model e electric vehicle segment lost almost $15 billion from early 2023 through 2025, and the company recorded about $19.5 billion in special charges in December 2025, roughly 40% of its market capitalization, including a $6 billion hit from ending its battery joint venture with SK On. The author calls the mass-market auto industry brutal, noting Ford spent over $21 billion in capital expenditures from 2015 to 2018 while its net income was cut in half. Although the forward P/E of 7 looks cheap, the article concludes that repurposing EV assets for AI-related battery demand will not drive meaningful profit, so Ford is best avoided even under $15 per share.