Ford’s Stock Won’t Stop Going Up

Core Viewpoint - Ford's stock has risen significantly despite facing challenges in its electric vehicle (EV) segment, indicating investor confidence in the company's overall strategy and future prospects [2][3]. Financial Performance - Ford incurred a $19.5 billion write-off related to its EV operations, yet its stock has increased by 49% over the past year and 7% in 2026 [2]. - The company missed its fourth-quarter earnings due to $900 million in tariffs and anticipates an additional $4 billion to $4.5 billion in losses from its "Model e" EV business this year [3]. Quality Control and Recalls - Ford reported a record 153 recalls affecting approximately 13 million vehicles last year, raising concerns about quality control [4]. - The company argues that recent models have improved quality and expects a significant reduction in recalls moving forward [4]. Strategic Partnerships - CEO Jim Farley is exploring joint ventures with Chinese auto manufacturers, acknowledging that they could dominate the U.S. market if tariffs are lifted [5][6]. - The discussions suggest a shift in Ford's approach to EV investments, potentially allowing Chinese companies to manufacture in the U.S. and bypass tariffs [6]. Business Segments - Ford's gas-powered vehicle business and its "Pro" division are performing well, with the latter expected to generate $6.5 billion to $7.5 billion in pre-tax earnings [7]. - The company has adopted a more realistic approach in communicating its business performance to investors, fostering optimism [7].