Ford Shares Fall 14% After Earnings Miss Projections

Core Viewpoint - Ford's second-quarter earnings fell short of analyst expectations, leading to a significant drop in its stock price and erasing previous gains for the year [1][2]. Financial Performance - Ford reported adjusted earnings per share of 47 cents, missing analyst projections of 68 cents [2]. - The company achieved overall revenue of $47.8 billion, representing a 6% increase year-over-year [3]. Electric Vehicle Business - Ford reported losses of $1.14 billion for its electric vehicle business for the three months ending in June, with projected losses of up to $5.5 billion for the year [4]. - The company cited an "extremely competitive price environment" as a factor contributing to these losses [4]. Market Reaction - Ford's shares fell below $12 in premarket trading, marking the worst day since October 27, when shares dropped 12% [2]. - Other automotive stocks, including Stellantis and General Motors, also experienced declines following their earnings announcements [5]. Strategic Decisions - Ford plans to invest approximately $3 billion to expand production of its F-Series trucks, while reassessing its electric vehicle business amid expected losses [6]. - The company has decided to delay the next generation of electric vehicles until they can be profitable, reflecting uncertainty in the electric vehicle market [6].