Ford Motor Company is struggling financially, recently reporting declining revenue and a significant drop in earnings. Its stock price has fluctuated between $9.35 and $10.80, and its forward dividend is at 7.23%, higher than competitors but potentially unsustainable. The company suspended 2025 guidance due to uncertainty regarding tariffs, which could have detrimental effects on earnings. Ford's transition to electric vehicles has also been problematic, with substantial losses in the EV sector. The management's assurance about the turnaround plan is met with skepticism among investors, leading to a 12% decline in shares over the past year.
Ford's recent quarterly results revealed a sharp drop in revenue from $42.8 billion to $40.7 billion, highlighting ongoing struggles in an increasingly competitive market.
The Chief Financial Officer indicated that despite current struggles, the 'Ford+' plan is aimed at creating a more sustainable, higher growth, and capital efficient business model.
As tariffs loom, Ford faces uncertainty that could further impact earnings, with market analysts expressing skepticism about the company's capability to navigate these challenges.
Ford's challenges in the electric vehicle sector became apparent as the company reported an EBIT loss of $849 million, illustrating significant hurdles in its transition strategy.
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