What's Behind Ford's EV Sales Plunge of 60% in November?

Core Insights - Ford's EV sales in the U.S. dropped significantly by 60.8% in November following the expiration of the $7,500 federal tax credit, with total vehicle sales slightly declining by 0.9% compared to November 2024 [1][8] Sales Performance - Hybrid vehicle sales increased by 13.6% to 16,301 units, while fully electric vehicle sales fell sharply to 4,247 units from 10,821 units in November 2024 [2][8] - Specific models like the Mustang Mach-E saw a 49% decrease in sales to 3,014 units, and the F-150 Lightning experienced a 72% drop to 1,006 units. The E-Transit van's sales plummeted by 82% to 227 units [2][8] Financial Performance - Ford Model e, the EV division, reported a loss of $1.4 billion in Q3, accumulating year-to-date losses of $3.6 billion, with approximately $3 billion linked to current EV models and around $600 million invested in next-generation EVs [3] - The Zacks Consensus Estimate for Ford's 2025 EPS has decreased by 2 cents in the past 30 days, while the 2026 EPS estimate has increased by 1 cent in the last week [9] Strategic Shift - Ford is transitioning its focus from larger, battery-heavy vehicles to smaller, more profitable models based on the new Ford Universal EV Platform, with a midsize EV pickup expected to launch in 2027 at around $30,000 [3][4] - The company has completed 95% of sourcing for the new platform, with vehicle testing ongoing and equipment installation set to begin at the Louisville plant later this year [4] Competitive Landscape - In November, Tesla's registrations in France and Denmark fell by approximately 50%, with sales in France down 58% to 1,593 units and in Denmark down 49% to 534 units [5] - BYD Company Limited delivered 474,921 passenger vehicles in November, a decrease of 5.7% year-over-year, with battery-electric models growing by 19.9% [6] Valuation - Ford's stock has outperformed the Zacks Automotive-Domestic industry year-to-date, with shares gaining 26.6% compared to the industry's 31.3% growth [7] - From a valuation perspective, Ford appears undervalued, trading at a forward sales multiple of 0.32, significantly lower than the industry's 3.25 [10]