Ford Motor Company (NYSE: F) is expected to maintain its status as a low-margin, low-growth business, which could hinder investment returns. The company has set a goal for its electric vehicle (EV) segment to become profitable by 2029. Currently, electric vehicles account for only 17% of Ford’s global sales volume, with projections indicating that this figure will rise to 50% by 2030. However, Ford recently incurred $19.5 billion in special charges due to weaker-than-expected demand.
Over the past decade, Ford’s total return has been just 86%, significantly lagging behind the S&P 500’s over 300% return. Analysts suggest that there’s little reason to believe Ford will outperform the S&P 500 in the coming decade, despite its stock trading at a low valuation. Additionally, the company has signaled a strategic shift to focus on hybrid models and smaller, affordable EVs as part of its long-term growth plan.
