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Ford Scales Back EV Push & Lifts EBIT View: Is F Stock a Buy Now?
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Key Takeaways
F is scaling back large EVs, prioritizing hybrids, gas vehicles, and smaller EVs on its Universal EV Platform.
Ford lifts 2025 adjusted EBIT outlook to about $7B from the previous guided range of $6-$6.5B
Ford expects to book about $19.5B in special items in Q4, tied to scaling back its EV strategy.
Ford (F - Free Report) is hitting a pause button on some of its electric vehicle (EV) ambitions after years of aggressive EV spending. The U.S. legacy automaker is now shifting gears toward what actually sells and makes money.
Slower EV adoption, changing U.S. regulations under the Trump administration, and rising costs are forcing Ford to rethink priorities. It now wants to lean more heavily on hybrids, gas-powered vehicles, and smaller, affordable EVs, while also lifting near-term profit expectations.
The big question for investors is whether this reset will make the stock more attractive now.
Ford Rethinks Its EV Strategy
The company is moving away from its plans to manufacture large EVs. Instead of rolling out expensive, capital-heavy EVs into a reluctant market, Ford is choosing a more pragmatic route.
The automaker will now focus on profitable hybrids and internal combustion vehicles, while narrowing its EV efforts to smaller, lower-cost models. At the center of this shift is Ford’s new Universal EV Platform, a flexible architecture designed to support a family of affordable, high-volume electric vehicles.
Ford’s first vehicle built on the Universal EV Platform will be a midsize electric pickup, assembled at the Louisville Assembly Plant starting in 2027. Notably, the company will no longer launch a fully electric version of its best-selling F-150 pickup. Instead, the F-150 Lightning will be redesigned as a hybrid, featuring a gas-powered generator. Ford is also canceling its upcoming electric van and doubling down on gas and hybrid alternatives.
Ford Is Not Alone
Across the industry, automakers are admitting that EV demand—especially in the United States—has not lived up to expectations.
General Motors (GM - Free Report) made a similar move last October, taking a $1.6 billion charge as it rolled back its EV ambitions. Stellantis (STLA - Free Report) recently scrapped its all-electric Ram 1500 REV pickup. Chrysler is walking back its EV-only promises, while Jeep is leaning harder into hybrids and even reviving the HEMI V8.
The United States has started to lag behind in EV adoption, largely due to weaker government support. That gap widened further after the Trump administration rolled back incentives and regulations meant to boost EV sales. A key tax credit—worth up to $7,500 for qualifying EVs and plug-in hybrids—expired in September, removing an important demand driver.
Profitability Takes Center Stage
Alongside its strategy shift, Ford is making several moves aimed at improving profitability.
The company is launching a battery energy storage systems business, leveraging its wholly owned plants in Kentucky and Michigan and lithium iron phosphate technology. This unit will serve energy infrastructure and fast-growing data center demand, with shipments expected to begin in 2027 and annual capacity reaching 20 GWh.
Ford expects these changes to lead to margin improvements across its businesses—Ford Blue, Ford Pro, and Ford Model e. Importantly, the Model e EV unit is now expected to reach profitability by 2029, with improvements starting in 2026.
There is a cost, though. The company expects to record about $19.5 billion in special items, mostly in the fourth quarter, tied to rationalizing its U.S. EV assets and product roadmap. About $5.5 billion of this will impact cash flow, primarily in 2026 and 2027.
Despite this, Ford raised its 2025 adjusted EBIT guidance to around $7 billion (up from the prior guided range of $6–$6.5 billion), citing underlying business strength and cost improvements. The company also reaffirmed its adjusted FCF guidance, trending toward the high end of the $2-$3 billion range.
F Stock Price, Valuation and Estimates
Shares of Ford have gained 31% over the past six months, underperforming the industry.
Image Source: Zacks Investment Research
Shares of General Motors and Stellantis have increased 70% and 25%, respectively, over the same timeframe.
From a valuation standpoint, Ford trades at a forward price-to-earnings ratio of 9.73, way above the industry. Ford carries a Value Score of A.
Image Source: Zacks Investment Research
Meanwhile, General Motors trades at a forward earnings multiple of 7.07 and Stellantis at 7.13.
The consensus estimate for Ford’s 2025 EPS points to a 43% year-over-year decline, followed by a projected 35% rebound in 2026. See how the Zacks Consensus Estimate for Ford’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
Is it Worth Buying Ford Stock Now?
Ford’s diversified business mix provides a layer of stability. Ford Pro continues to show solid momentum, the company has a strong liquidity position, and its dividend yield remains attractive for income-focused investors. Over the long term, hybrids and the Universal EV Platform could help Ford stay competitive without burning excessive capital.
Still, risks remain. The Model e unit continues to generate losses and faces intense competition. The nearly $20 billion in one-time charges is a meaningful overhang. Ford is also dealing with supply disruptions following a fire at Novelis’ aluminum plant, a key supplier. On top of that, recall and tariff costs are pressuring margins. Ford has issued over 100 recalls in 2025—the most among automakers—driving up warranty and repair expenses and limiting flexibility to invest in future technologies.
While Ford is sharpening its strategy and focusing on what works, big one-time charges and ongoing risks do not make the stock a buy now. Existing investors can stay put as the company executes its Ford+ plan.
Image: Bigstock
Ford Scales Back EV Push & Lifts EBIT View: Is F Stock a Buy Now?
Key Takeaways
Ford (F - Free Report) is hitting a pause button on some of its electric vehicle (EV) ambitions after years of aggressive EV spending. The U.S. legacy automaker is now shifting gears toward what actually sells and makes money.
Slower EV adoption, changing U.S. regulations under the Trump administration, and rising costs are forcing Ford to rethink priorities. It now wants to lean more heavily on hybrids, gas-powered vehicles, and smaller, affordable EVs, while also lifting near-term profit expectations.
The big question for investors is whether this reset will make the stock more attractive now.
Ford Rethinks Its EV Strategy
The company is moving away from its plans to manufacture large EVs. Instead of rolling out expensive, capital-heavy EVs into a reluctant market, Ford is choosing a more pragmatic route.
The automaker will now focus on profitable hybrids and internal combustion vehicles, while narrowing its EV efforts to smaller, lower-cost models. At the center of this shift is Ford’s new Universal EV Platform, a flexible architecture designed to support a family of affordable, high-volume electric vehicles.
Ford’s first vehicle built on the Universal EV Platform will be a midsize electric pickup, assembled at the Louisville Assembly Plant starting in 2027. Notably, the company will no longer launch a fully electric version of its best-selling F-150 pickup. Instead, the F-150 Lightning will be redesigned as a hybrid, featuring a gas-powered generator. Ford is also canceling its upcoming electric van and doubling down on gas and hybrid alternatives.
Ford Is Not Alone
Across the industry, automakers are admitting that EV demand—especially in the United States—has not lived up to expectations.
General Motors (GM - Free Report) made a similar move last October, taking a $1.6 billion charge as it rolled back its EV ambitions. Stellantis (STLA - Free Report) recently scrapped its all-electric Ram 1500 REV pickup. Chrysler is walking back its EV-only promises, while Jeep is leaning harder into hybrids and even reviving the HEMI V8.
The United States has started to lag behind in EV adoption, largely due to weaker government support. That gap widened further after the Trump administration rolled back incentives and regulations meant to boost EV sales. A key tax credit—worth up to $7,500 for qualifying EVs and plug-in hybrids—expired in September, removing an important demand driver.
Profitability Takes Center Stage
Alongside its strategy shift, Ford is making several moves aimed at improving profitability.
The company is launching a battery energy storage systems business, leveraging its wholly owned plants in Kentucky and Michigan and lithium iron phosphate technology. This unit will serve energy infrastructure and fast-growing data center demand, with shipments expected to begin in 2027 and annual capacity reaching 20 GWh.
Ford expects these changes to lead to margin improvements across its businesses—Ford Blue, Ford Pro, and Ford Model e. Importantly, the Model e EV unit is now expected to reach profitability by 2029, with improvements starting in 2026.
There is a cost, though. The company expects to record about $19.5 billion in special items, mostly in the fourth quarter, tied to rationalizing its U.S. EV assets and product roadmap. About $5.5 billion of this will impact cash flow, primarily in 2026 and 2027.
Despite this, Ford raised its 2025 adjusted EBIT guidance to around $7 billion (up from the prior guided range of $6–$6.5 billion), citing underlying business strength and cost improvements. The company also reaffirmed its adjusted FCF guidance, trending toward the high end of the $2-$3 billion range.
F Stock Price, Valuation and Estimates
Shares of Ford have gained 31% over the past six months, underperforming the industry.
Shares of General Motors and Stellantis have increased 70% and 25%, respectively, over the same timeframe.
From a valuation standpoint, Ford trades at a forward price-to-earnings ratio of 9.73, way above the industry. Ford carries a Value Score of A.
Meanwhile, General Motors trades at a forward earnings multiple of 7.07 and Stellantis at 7.13.
The consensus estimate for Ford’s 2025 EPS points to a 43% year-over-year decline, followed by a projected 35% rebound in 2026. See how the Zacks Consensus Estimate for Ford’s earnings has been revised over the past 90 days.
Is it Worth Buying Ford Stock Now?
Ford’s diversified business mix provides a layer of stability. Ford Pro continues to show solid momentum, the company has a strong liquidity position, and its dividend yield remains attractive for income-focused investors. Over the long term, hybrids and the Universal EV Platform could help Ford stay competitive without burning excessive capital.
Still, risks remain. The Model e unit continues to generate losses and faces intense competition. The nearly $20 billion in one-time charges is a meaningful overhang. Ford is also dealing with supply disruptions following a fire at Novelis’ aluminum plant, a key supplier. On top of that, recall and tariff costs are pressuring margins. Ford has issued over 100 recalls in 2025—the most among automakers—driving up warranty and repair expenses and limiting flexibility to invest in future technologies.
While Ford is sharpening its strategy and focusing on what works, big one-time charges and ongoing risks do not make the stock a buy now. Existing investors can stay put as the company executes its Ford+ plan.
Ford currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.