We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford's Mach-E Woes Fuel EV Sales Slump: Is it Re-Strategizing?
Read MoreHide Full Article
Key Takeaways
Mustang Mach-E sales slid 19.5% due to a global recall over faulty electronic door latches.
Ford's overall EV slump was due to Mach-E issues and factory shutdowns for 2025 model prep.
Ford plans a new EV lineup launching in 2027 with starting prices below $30,000.
Ford (F - Free Report) currently has three models in its electric vehicle lineup —Mustang Mach-E SUV, F-150 Lightning pickup truck and E-Transit van. The company reported that in the second quarter, its EV sales plunged 31.4%. EV deliveries dropped from 23,957 units in the same period last year to 16,438 units this year. The slump was mainly due to a recall and a further halt in Mustang Mach-E deliveries.
Mustang Mach-E’s software glitch in electronic door latches posed serious risks of getting trapped inside or left outside the car. While a software update to fix this is expected to come out in the third quarter, the second quarter witnessed the recall, causing a setback to more than 317,000 vehicles globally. Another reason for such a sharp decline was Ford’s prep for the model year 2025, causing factory shutdowns and resultant inventory shortages for all three EVs.
Ford sold 5,842 F-150 Lightning trucks in the second quarter, marking a 26% decline compared with second-quarter 2024. Mustang Mach-E sales dropped 19.5% to 10,178 units, while E-Transit sales plunged 87.7%, with just 418 units sold.
The troublesome conditions of its EV segment have led Ford to reconsider strategy and refocus on affordability. Ford is on its way to bring out a new lineup of EVs, beginning at prices lower than $30000. It is set to be launched in 2027. The loss in momentum also draws eyes toward Ford’s exposure to tariffs, as only 13% of its top-selling model, Mustang Mach-E, is U.S. content. With an existing stop sale order and tariff woes looming, its best-selling EV is anticipated to face a big hit.
Ford’s broad lineup of electrified hybrids stands to rescue with a record sale of 156,509 units in the first half of 2025, powering its U.S. vehicle sales to grow 14.7%.
Peer Comparison
General Motors Company (GM - Free Report) ), the American automaker giant, witnessed a strong second-quarter sales growth of 111% of EVs compared with the previous-year quarter. It now has a lineup of 11 EV models, of which Chevrolet has displayed the highest growth of 134% in the H1 sales, led by Equinox EV, which has secured General Motors’ place among the top three best-selling EVs. Similarly, Cadillac emerged as the luxury EV market share leader in the second quarter. General Motors boasts an EV market share of 16%.
Tesla, Inc. (TSLA - Free Report) ), the pioneer in EV technology, has seen deliveries shrink in the second quarter as it struggles with a dated lineup, expensive pricing and the controversial politics. It reported 384,122 vehicle deliveries. The figure declined 14% from Tesla’s year-ago level of 443,956. This was the second consecutive quarter that Tesla witnessed double-digit declines.
The Zacks Rundown for Ford
Shares of Ford have lost around 1.9% over the past year compared with the industry’s decline of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.29, down from the industry average. It carries a Value Score of A.
Image Source: Zacks Investment Research
Take a look at how Ford’s EPS estimates have been revised over the past 30 days.
Image: Bigstock
Ford's Mach-E Woes Fuel EV Sales Slump: Is it Re-Strategizing?
Key Takeaways
Ford (F - Free Report) currently has three models in its electric vehicle lineup —Mustang Mach-E SUV, F-150 Lightning pickup truck and E-Transit van. The company reported that in the second quarter, its EV sales plunged 31.4%. EV deliveries dropped from 23,957 units in the same period last year to 16,438 units this year. The slump was mainly due to a recall and a further halt in Mustang Mach-E deliveries.
Mustang Mach-E’s software glitch in electronic door latches posed serious risks of getting trapped inside or left outside the car. While a software update to fix this is expected to come out in the third quarter, the second quarter witnessed the recall, causing a setback to more than 317,000 vehicles globally. Another reason for such a sharp decline was Ford’s prep for the model year 2025, causing factory shutdowns and resultant inventory shortages for all three EVs.
Ford sold 5,842 F-150 Lightning trucks in the second quarter, marking a 26% decline compared with second-quarter 2024. Mustang Mach-E sales dropped 19.5% to 10,178 units, while E-Transit sales plunged 87.7%, with just 418 units sold.
The troublesome conditions of its EV segment have led Ford to reconsider strategy and refocus on affordability. Ford is on its way to bring out a new lineup of EVs, beginning at prices lower than $30000. It is set to be launched in 2027. The loss in momentum also draws eyes toward Ford’s exposure to tariffs, as only 13% of its top-selling model, Mustang Mach-E, is U.S. content. With an existing stop sale order and tariff woes looming, its best-selling EV is anticipated to face a big hit.
Ford’s broad lineup of electrified hybrids stands to rescue with a record sale of 156,509 units in the first half of 2025, powering its U.S. vehicle sales to grow 14.7%.
Peer Comparison
General Motors Company (GM - Free Report) ), the American automaker giant, witnessed a strong second-quarter sales growth of 111% of EVs compared with the previous-year quarter. It now has a lineup of 11 EV models, of which Chevrolet has displayed the highest growth of 134% in the H1 sales, led by Equinox EV, which has secured General Motors’ place among the top three best-selling EVs. Similarly, Cadillac emerged as the luxury EV market share leader in the second quarter. General Motors boasts an EV market share of 16%.
Tesla, Inc. (TSLA - Free Report) ), the pioneer in EV technology, has seen deliveries shrink in the second quarter as it struggles with a dated lineup, expensive pricing and the controversial politics. It reported 384,122 vehicle deliveries. The figure declined 14% from Tesla’s year-ago level of 443,956. This was the second consecutive quarter that Tesla witnessed double-digit declines.
The Zacks Rundown for Ford
Shares of Ford have lost around 1.9% over the past year compared with the industry’s decline of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.29, down from the industry average. It carries a Value Score of A.
Image Source: Zacks Investment Research
Take a look at how Ford’s EPS estimates have been revised over the past 30 days.
Image Source: Zacks Investment Research
Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.