Ford Faces Continued EV Losses and Profitability Concerns

Published 1 days agoF

Ford Faces Continued EV Losses and Profitability Concerns

Ford Motor Company is currently trading at $10.36 per share. The company anticipates facing up to $5.5 billion in losses from its electric vehicle and software operations throughout 2025, a repeat of losses seen last year. Additionally, Ford's overall profitability is expected to decline this year in comparison to 2024. This projection is partially due to quality issues and potential repercussions from changes in U.S. policy, according to Reuters.

Recent strategic changes include Ford's decision to cancel plans for a new three-row electric SUV, choosing instead to offer it as a hybrid model. This shift could result in a possible $1.9 billion writedown, as reported by the Financial Times. Furthermore, Ford has adjusted its earnings guidance for 2024 downward, citing high warranty costs and slow progress in cost-cutting measures. This announcement led to a 6% drop in Ford's stock price, according to AP News.

Despite these challenges, some analysts suggest Ford's stock might be undervalued. Nasdaq notes the stock's forward sales multiple of 0.26 is below its five-year average, and its price-to-cash flow ratio stands significantly lower than the industry average. Morningstar has rated Ford's stock as a 4-star 'undervalued' investment, with a fair value estimate raised from $19 to $20 per share.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Infosys Partners with E.ON for Digital Workplace Overhaul

Infosys Partners with E.ON for Digital Workplace Overhaul

13 minutes agoINFY

Infosys has been working closely with E.ON to revamp its digital workplace, aiming to create a seamless, user-focused experience for over 60,000 employees across nine countries. The collaboration is geared towards unifying a diverse workforce by implementing cloud technologies and emphasizing employee satisfaction. A significant outcome of this partnership is the enhancement of team collaboration across different locations, along with a targeted focus on the well-being of employees. Infosys reports that the initiative has surpassed its initial goals due to continuous improvements. In addition, Infosys has upgraded E.ON's network operations via a next-generation, SD-WAN-based, cloud-oriented network transformation, which is designed to support extensive energy transition efforts while boosting user experience. As part of the broader strategy to support E.ON's digital transformation, Infosys has also developed a cloud-native platform in the UK. This platform is tasked with facilitating smart metering and introducing new customer solutions, aligning with E.ON's objectives to further digitalize and transition towards sustainable energy solutions. This partnership highlights Infosys's dedication to enhancing both the digital infrastructure and energy transition capabilities of E.ON.

Visa Appoints Antony Cahill as CEO for European Operations

Visa Appoints Antony Cahill as CEO for European Operations

28 minutes agoV

Visa has appointed Antony Cahill as the new CEO for its European operations, succeeding Charlotte Hogg. This leadership change marks a significant shift as the company aims to bolster its presence and capabilities across the continent. Cahill, bringing over two decades of experience in banking and financial services, has previously held executive posts at National Australia Bank and ANZ. Before stepping into his new role, Cahill was Visa's Managing Director for European Regions, where he managed operations across 35 countries. ProactiveInvestors highlighted his efforts in this role, focusing on integrating artificial intelligence into Visa's services to enhance online shopping and loyalty programs. The appointment aligns with Visa's strategic objectives to reinforce its leadership and operational efficiency in Europe. This transition is seen as a move to strengthen the company's efforts in providing value-added services and exploring new technological advancements within the region.

Diginex Expands Strategic Alliances in ESG Initiatives

Diginex Expands Strategic Alliances in ESG Initiatives

43 minutes agoEQOS

Diginex, a leader in digital finance and asset management technology, has been actively advancing its initiatives in the environmental, social, and governance (ESG) sector through a series of strategic partnerships. Most recently, on April 28, 2025, the company announced the appointment of two senior executives tasked with driving sustainable finance initiatives alongside strategic mergers and acquisitions. This move aims to bolster Diginex’s growth strategy in the ESG domain. Earlier developments include a collaboration with Baker Tilly Singapore, announced on April 24, 2025, to provide the diginexESG platform to Baker Tilly's clientele. On April 15, 2025, an alliance with AIKYA was declared to introduce diginexESG in Malaysia, promoting effective ESG reporting and sustainable financial practices. Additionally, on March 31, 2025, Diginex joined forces with Forvis Mazars to enhance supply chain risk assessment services using the diginexLUMEN tool. These ongoing efforts reflect Diginex's strategic push towards integrating technology solutions with ESG practices. The company is committing significant resources to foster partnerships worldwide, as evidenced by its March 11, 2025, alliance with Russell Bedford International, intended to proliferate ESG reporting across the global accounting sector. Such moves underline Diginex’s dedication to leading the charge in responsible and sustainable financial practices.

Trump Supports Nippon Steel's $15 Billion Bid for U.S. Steel

Trump Supports Nippon Steel's $15 Billion Bid for U.S. Steel

In a notable shift, former President Donald Trump has announced his support for the $15 billion acquisition of U.S. Steel by Japan's Nippon Steel. This endorsement marks a departure from his previous stance against foreign ownership, which he emphasized during his 2024 election campaign according to the Financial Times. Trump's backing highlights the multifaceted landscape of U.S. industrial policy as it intersects with international investment. Nippon Steel has committed to investing a substantial $14 billion into U.S. Steel's operations. This includes plans for a new $4 billion steel mill, reflecting their strategy to invigorate American manufacturing and purportedly create around 70,000 jobs, Reuters reported. As a part of maintaining domestic ties, U.S. Steel's headquarters will remain in Pittsburgh, ensuring an American helm for the company even under new ownership. Despite these developments, concerns have surfaced from the United Steelworkers union over potential risks to domestic steel production and union jobs. These apprehensions underscore the union's call for strong safeguards to protect American workers' interests. Meanwhile, market response has been notably positive, with U.S. Steel's shares jumping 21%, showcasing investor optimism about the merger's potential benefits, AP News highlighted.