Ford Shifts EV Strategy to Boost Profitability: What to Know
Ford announced it is delaying production of its electric vehicle truck and discontinuing its three-row SUV. Here's what that means for investors.


Ford Motor (F) announced Wednesday that it is shifting its electric vehicle (EV) strategy to deliver profitable and capital-efficient growth, including offering a wider range of electrification options at lower prices and increasing ranges. Wall Street is embracing the news, sending Ford's stock higher in intraday trading.
Ford's plan includes delaying the production of its all-electric pickup truck to the second half of 2027. It was initially expected to begin production next year.
The company is also canceling plans for its three-row sports utility vehicle (SUV), and instead prioritizing hybrid models and electric commercial vehicles, according to CNBC. Ford will incur a special non-cash charge of about $400 million due to the adjusted plans, which may also result in additional expenses and cash expenditures of up to $1.5 billion.

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The automaker also said it would realign its U.S. battery sourcing to reduce costs and boost capacity for current and future production. "An affordable electric vehicle starts with an affordable battery," said Ford CEO Jim Farley in a statement. "If you are not competitive on battery cost, you are not competitive."
"We're committed to creating long-term value by building a competitive and profitable business," said Ford Chief Financial Officer John Lawler. "With pricing and margin compression, we've made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT [earnings before interest and taxes] within the first 12 months of launch for all new models."
Is Ford stock a buy, sell or hold?
Ford Motor has underperformed on the price charts in 2024, down more than 4% on a total return basis (price change plus dividends) vs a 30% return for the S&P 500. This has Wall Street sitting on the sidelines when it comes to the consumer discretionary stock.
True, the average price target among the 26 analysts following F stock tracked by S&P Global Market Intelligence is $13.43, representing implied upside of about 24% to current levels. However, the consensus recommendation is a Hold.
"We believe the market still lacks faith in Ford's EV and software strategy, which compounds the higher cash balance and lack of higher cash returns issue as investors are concerned about the return they will see on that cash," says UBS Global Research analyst Joseph Spak (Neutral, the equivalent of Hold). While the analyst believes electrification is where the market is headed over the intermediate term, investors are currently seeking profits from internal combustion engine (ICE) vehicles.
However, there are some bulls in Ford's corner. Financial services firm BofA Securities, for instance, has a Buy rating and $20 price target on Ford stock.
BofA analyst John Murphy recently went on the road with Ford's CEO and chief financial officer. "The conversation focused on Ford's efforts to reduce warranty costs, opportunities to grow earnings in Ford Pro, and the company's progress in cutting EV costs," Murphy said, with the executives reiterating that the company plans to make "no changes to its capital allocation strategy" and "pay out 40% to 50% of free cash flow as dividends and deploy capital to grow the business."
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Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
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