In January 2021, Ford Motor Co. (NYSE: F) stock traded at $9.87. Recently, it traded at $9.76. The price shows that a planned investment of $30 billion in electric vehicles (EVs) and the complete failure of that investment have torn Ford’s value to pieces compared to the broader stock market.
24/7 Wall St. Key Points:
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Ford Motor Co. (NYSE: F) stock is trading at about the same level as in January 2021.
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The company has no way to save itself from an overwhelming onslaught to its sales.
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It begs the question of why the Ford family has kept William Clay Ford Jr. as the head of the company. Even though his title is executive chairperson and not CEO, he is in charge of the company’s strategy and major investments. He is also chair of the powerful finance committee of the board.
Existential Threats
Whatever mistakes the company has made in the past, it faces what CEO Jim Farley calls an “existential threat” from Chinese electric car companies. This is why its stock has little chance of moving up at all.
Ford is trapped in the United States. It has a modest market share in Europe at about 5% overall. Its China operation was highly profitable for years. That was a key to its success, as was the case with many of the largest Western multinational car companies. CNN recently reported that the market share of Ford and General Motors Co. (NYSE: GM) was “disappearing” in China.
Ford’s only meaningful market is the United States. It has a market share of 13% there, just behind Toyota Motor Corp.’s (NYSE: TM) 14%. Market leader GM has a share of 17%.
Ford has another issue. In the United States, 36% of its sales are from the F-Series pickups. No other model has sales that are 10% of the total.
If the U.S. fortress built by tariffs on Chinese EVs, which are currently 100%, falls, Ford has no way to save itself from an overwhelming onslaught to its sales.
General Motors Price Prediction and Forecast 2025-2030
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