Ford Fails Again

3 weeks ago 12

Jeremy Phillips

Wed, December 17, 2025 astatine 8:33 AM CST 5 min read

A achromatic inheritance with ample achromatic substance stating 'FORD FAILS AGAIN' astatine the top. Below, the bluish Ford oval logo is connected the near with a grey downward-curving arrow. On the right, the reddish and metallic Tesla logo is displayed with a grey upward-curving arrow. A tiny greenish '24/7 WALL ST' logo is successful the bottommost close corner.

24/7 Wall St.

Ford wrote disconnected $19.5B connected EVs (36% of its marketplace cap) aft losing $13B since 2023.
Tesla’s marketplace headdress reached $1.63T. That is 30 times Ford’s valuation.
Ford discontinued the F-150 Lightning due to the fact that it could not capable works capableness profitably.
A caller survey identified 1 azygous wont that doubled Americans’ status savings and moved status from dream, to reality. Read much here.

When Ford (NYSE:F) announced a $19.5 cardinal write-off connected its electrical conveyance business, shareholders didn't panic. They exhaled. The banal hardly flinched, trading adjacent 52-week highs astatine $13.67, due to the fact that investors were relieved Ford yet stopped burning currency connected a conflict it was ne'er equipped to win.

The write-off represents 36% of Ford's full $54.5 cardinal marketplace cap. That's not a rounding error. That's an admittance that everything Ford stake connected EVs was fundamentally mispriced from time one. The institution has mislaid $13 cardinal connected EVs since 2023 alone, with its Model e part bleeding $1.4 cardinal successful Q3 2025. CFO Sherry House acknowledged successful October that "the lone applicable mode to amended the profitability of our Gen 1 vehicles is done 1 oregon much of the following: pricing, caller outgo reductions, and improved fixed outgo leverage." Two months later, Ford gave up entirely.

This isn't a communicative astir whether EVs are the future. It's astir Ford's inability to manufacture them profitably portion Tesla (NASDAQ:TSLA) treats the mill itself arsenic a product. Tesla's Shanghai Gigafactory conscionable produced its 4 millionth conveyance with industry-leading efficiency, portion Berlin has go Tesla's astir businesslike works globally. Ford, meanwhile, is renaming its Tennessee Electric Vehicle Center backmost to "Tennessee Truck Plant" to physique gas-powered trucks instead.

Tesla's marketplace headdress deed $1.63 trillion past week, 30 times Ford's valuation, connected the aforesaid time Ford announced its EV retreat. Gene Munster of Deepwater Asset Management captured it perfectly: "Ford's retreat from EVs volition payment Tesla, making it harder for Ford to physique autonomous vehicles." Gary Black of Future Fund was much blunt: "Ford can't marque money... Ford's pivot to hybrids is an admittance that it cannot nett from launching EV marque extensions."

Just six weeks earlier the write-off, CEO Jim Farley sounded assured connected Ford's Q3 net call. He touted the company's cosmopolitan EV level that would "start astatine astir $30,000" and claimed "sourcing is astatine 95% implicit now." He promised to unveil caller products successful Q1. That optimism aged similar milk.