Ford Motor Company (F) surged more than 12% to $13.84 on Friday, its highest level since July 2024. The rally came a day after the automaker posted its third-quarter results and showed progress in fixing key problems. Investors remain encouraged by its plan to cut losses in its EV unit and recover from a major supply setback.
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The rally seems to be driven more by Ford’s plan to steady its business than by short-term earnings. The company lowered its full-year profit outlook to $6–$6.5 billion from $6.5–$7.5 billion, showing that investors are focused more on Ford’s future plans than on its current numbers.
Ford Shifts Focus to Hybrids and Lower EV Costs
Ford’s electric vehicle unit lost $1.4 billion last quarter, its biggest loss since 2023. The loss came even as EV sales rose, helped by buyers rushing to claim a $7,500 tax credit before it expires. CEO Jim Farley said U.S. EV demand remains weak, with only about 5% of the market expected to buy electric cars this year.
To adapt, Ford is now focusing more on hybrid vehicles. “We are prioritizing hybrids across our lineup,” Farley said, adding that the company is working on longer-range hybrid models and a new, cheaper EV platform. Ford plans to launch a $30,000 electric truck by 2027, with nearly all sourcing already secured.
Ford Works to Recover from Aluminum Plant Fire
Ford is also dealing with the impact of a fire at Novelis’ aluminum plant in Oswego, New York, a key supplier for the auto industry. The company expects a $1.5–$2 billion hit to its fourth-quarter earnings and a drop in production of up to 100,000 vehicles.
Still, Ford’s management is confident about recovery. CFO Sherry House said the company expects to recover much of that by ramping up production in 2025 and 2026. As a result, the company plans to add 1,000 workers in Michigan and Kentucky next year to help recover around 50,000 lost vehicles.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. The average F price target of $11.79 per share implies 14.81% downside risk.
