What Sent Ford Spiraling 18% in 2024?

Ford's Stock Performance in 2024 - Ford's stock declined by 18% in 2024, while General Motors' stock jumped by 48% [1] - The decline in Ford's stock was driven by multiple challenges, including quality issues, high warranty costs, and struggles in the EV market [9] Quality and Warranty Issues - Ford has led the US auto industry in recalls for three consecutive years and may continue in 2024 [2] - Warranty expenses increased significantly, with $2 billion in Q2 2024, representing 4$2.8 billion in Q2 2024, below Wall Street estimates of $3.7 billion [3][4] - Ford has been working to address quality issues, but the impact of newer models on recalls and warranty costs will take time [5] Electric Vehicle (EV) Challenges - Ford's EV division, Model-e, is expected to post a$5 billion loss in 2024 [6] - The company faces significant costs in developing its EV lineup [6] Struggles in the Chinese Market - Ford is facing growing challenges in China, where new-energy vehicles (EVs, plug-in hybrids, and hybrids) now dominate over half the market [7] - The Chinese EV market is in a brutal price war due to intense competition and government subsidies, making it difficult for foreign automakers, except Tesla [8] - Ford may need to reconsider its strategy in China, potentially including a complete exit [9] Summary of Ford's Challenges - Ford's 18% stock decline in 2024 reflects multiple issues: quality and warranty costs, EV development challenges, and struggles in China [9] - While these problems are fixable, they require time and strategic adjustments [10]