Should You Buy Ford Stock While It's Under $13?

Core Viewpoint - Ford Motor Company is experiencing a stock increase of over 17% this year, but faces significant challenges and opportunities primarily related to its electric vehicle (EV) strategy [1] Financial Performance - Ford's Model e business is heavily loss-making, with a revenue of $5.4 billion and an earnings loss of $3.6 billion in the first nine months of 2025 [4] - The Ford Pro segment generated $51.4 billion in revenue with earnings before interest and taxation of $5.6 billion, while Ford Blue had $74.8 billion in revenue and $2.3 billion in earnings [4] Electric Vehicle Strategy - Ford's strategy of releasing EV versions of successful internal combustion engine (ICE) vehicles has faced setbacks, particularly with disappointing sales of the F-150 Lightning pickup truck, leading to considerations of ending its production [2] - The goal of having commercial self-driving cars by 2021 has not been realized, and Ford is no longer a primary developer in that market [3] Market Position and Future Outlook - Ford's value is primarily in its commercial, government, and rental customer business through the Pro segment, which provides a competitive advantage as EV adoption in these sectors is slow due to operational challenges [5] - CEO Jim Farley's commitment to invest $5 billion in a universal EV platform and a $30,000 pickup by 2027 indicates Ford's recognition of the need to remain relevant in the evolving EV market [7] - Ford's stock trades at 12.5 times its estimated 2025 earnings, which may appear cheap but could be costly if the company's EV strategy fails [8]