Ford Motor Company (NYSE: F) has seen only a 16% increase in its stock over the last decade, significantly trailing the S&P 500’s 325% gain during the same period. Although its total return including cash dividends is 97%, this performance raises questions about the company’s future viability particularly as it attempts to pivot back from electric vehicles (EVs). In December, Ford announced a $19.5 billion asset write-down due to canceled EV projects, reflecting its struggles amid changing government policies and supply chain disruptions exacerbated by tariffs.
The Trump administration’s tariff policies have complicated Ford’s planning and reduced sales of EVs in the U.S., which dropped by 41% in November after the removal of a tax credit. As Ford shifts away from its electric vehicle plans, opting instead for hybrid models, it risks losing market share to competitors like Rivian, who may capitalize on reduced competition in the fully electric pickup truck market.
Currently, Ford’s stock has a price-to-earnings (P/E) ratio of 9.8, suggesting limited downside risk, and the company is expected to maintain its 5.4% dividend by focusing on gasoline-powered trucks and SUVs. However, analysts recommend caution as Ford’s current trajectory may not appeal to growth-focused investors.
