Ford CEO Jim Farley Says "There Are No Guarantees" With New $5 Billion EV Investment. Is Ford Stock a Risk Worth Taking for Investors?

Core Viewpoint - Ford Motor Company has struggled as an investment for decades, but its new electric vehicle (EV) manufacturing methodology may provide a much-needed boost [1][2] Group 1: Company Challenges - Ford's "Model E" EV division has incurred significant losses, amounting to $2.2 billion in the first half of the year [2] - The company faces production issues due to the structural differences between battery-powered and internal combustion vehicles, leading to recalls [3] Group 2: New Manufacturing Strategy - CEO Jim Farley announced a $5 billion initiative to convert the Louisville production facility into a dedicated EV production site, reworking the assembly line into an "assembly tree" [4] - This new process aims to reduce parts by 20% and increase production speed by up to 40%, potentially allowing Ford to sell an electric pickup truck for around $30,000 by 2027 [5] Group 3: Potential Risks and Timeline - The timing of the announcement coincides with the reduction of federal EV subsidies, which could negatively impact consumer demand for EVs [8] - The new assembly process may not deliver the expected efficiency and cost savings, risking the $5 billion investment [9] - The first vehicle from the reconfigured plant is not expected until 2027, making it a long wait for investors to see any potential benefits [10]