Ford Motor Co. has pledged to invest $30 billion in electric vehicles by 2025, yet new federal regulations eliminating the EV tax credit threaten this strategy. As Ford currently suffers losses on EV sales, experts suggest it is more vulnerable than industry leader Tesla, which boasts positive margins. With a reduction in its EV production and an array of incentives indicating weak demand, Ford struggles to maintain its share amid a mild market. Its stock has underperformed compared to competitors, reflecting broader challenges in the transition towards electric mobility.
Given Ford's heavy dependency on the EV tax credit, the upcoming elimination will significantly impact its finances, especially as it struggles with EV profitability.
Ford's declining stock indicates deeper problems, as it faces a stagnant EV market and has difficulty competing against Tesla's well-established market share.
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