Core Insights - Ford Motor Company has decided to withdraw its $7,500 tax credit program for EV leases after the federal subsidy expiration on September 30, 2025, aligning with a similar decision by General Motors [1][2] - The company will not claim the EV tax credit but will maintain competitive lease rates in the market, contrasting with competitors like Hyundai and Stellantis that are offering direct cash incentives [2] - Ford's shares have increased by 15.3% year-to-date, outperforming both the industry and its rivals [4] Sales Performance - In the third quarter of 2025, Ford sold 545,522 vehicles in the U.S., marking an 8.2% year-over-year increase, with sales of pickups and vans rising by 7.4% [8][9] - Sales of electrified vehicles, including hybrids and all-electrics, reached 85,789 units, up 19.8% year-over-year, representing 15.7% of total sales [8][9] Ford Pro Segment - Ford Pro is experiencing strong order books and a 30% increase in software subscriptions, indicating a promising future for the segment [11] - The successful launch of the all-new Super Duty and increasing demand across vehicles, software, and services contribute to Ford Pro's growth [11] Financial Outlook - Ford has raised its expected tariff impact for 2025 to a net $2 billion, up from a previous estimate of $1.5 billion, with a gross tariff cost forecast now at $3 billion [12][13] - The Model e segment continues to face challenges, with losses widening to $5.07 billion in 2024 due to pricing pressure and high costs associated with new EV development [13] Valuation and Broker Ratings - Ford appears undervalued with a forward sales multiple of 0.28, significantly lower than the industry's five-year average [14] - The average brokerage recommendation for Ford stock is 3.12 on a scale of 1 to 5, indicating a neutral stance among analysts [15] Conclusion - Ford demonstrates solid operational performance and market resilience, with strong sales momentum and expanding demand in its Ford Pro division [19] - Despite challenges from tariffs and losses in the EV unit, Ford's attractive valuation and focus on software-driven revenue suggest a compelling long-term investment opportunity [20]

Core Insights - Ford Motor Company significantly outperformed the broader U.S. auto industry in Q2 2025, delivering 612,095 vehicles, a 14.2% year-over-year increase, compared to the industry's estimated growth of 1.4% [1][9] - The company's market share increased by 1.8 percentage points from Q1 to an estimated 14.3% [1][9] Sales Performance - Strong demand for pickup trucks was a key driver of Ford's performance, with combined sales of the F-Series, Ranger, and Maverick rising 15.1% year-over-year to 288,564 units [2][9] - Electrified vehicle sales, including hybrids and plug-in hybrids, grew 6.6% year-over-year to 82,886 units in Q2 [2][9] - In the first half of 2025, Ford sold a record 156,509 electrified vehicles, up 14.7% year-over-year, surpassing the combined EV and hybrid sales of General Motors and Stellantis [3] Competitive Landscape - General Motors reported U.S. deliveries of 746,588 units in Q2 2025, marking a 7% increase year-over-year, with EV sales rising 111% to 46,280 units [5] - Stellantis sold 309,976 vehicles in the U.S. in Q2 2025, down 10% year-over-year, continuing a downward trend in sales [6] Future Outlook - Ford plans to begin deliveries of the new Explorer Tremor and F-150 Lobo in Q3 2025, enhancing its off-road and performance vehicle lineup [4] Valuation Metrics - Ford's shares have gained 18.9% year-to-date, outperforming the Zacks Automotive-Domestic industry, which has declined by 23.4% [7] - The company appears undervalued with a forward price/sales ratio of 0.29, significantly lower than the industry's 2.48 [11]