Should You Buy Ford Stock While It's Under $13?
Key Points
CEO Jim Farley's bet on electric vehicles makes sense.
Ford stock may look cheap, but it is risky.
- 10 stocks we like better than Ford Motor Company ›
Ford Motor Company (NYSE: F) stock is trading up more than 17% this year, but its performance somewhat obscures the fact that the company faces both challenges and opportunities that define its viability as an investment. They center around its electric vehicle (EV) strategy.
How Ford makes money
The company has been largely unsuccessful in its EV aims so far. First, its Model e business remains heavily loss-making (see table below). Second, the strategy of legacy automakers releasing EV versions of highly successful internal combustion engine (ICE) vehicles received a setback, as disappointing sales of Ford's F-150 Lightning pickup truck have shown. Ford is reportedly considering ending production of the electric pickup truck.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Third, Ford's aim (outlined in 2019) of having commercial self-driving cars in 2021 didn't happen, and Ford is no longer a primary developer in the market.
|
First Nine Months 2025 Segment |
Revenue |
Earnings Before Interest and Taxation |
|---|---|---|
|
Ford Pro |
$51.4 billion |
$5.6 billion |
|
Ford Blue |
$74.8 billion |
$2.3 billion |
|
Ford Model e |
$5.4 billion |
($3.6 billion) |
Data source: Ford presentations.
Investing in Ford
Ford's value lies in its commercial, government, and rental customer business, the Pro segment. That gives Ford a moat, as EV adoption in the commercial van and truck sector has been held back by the extra weight of EVs and the need to keep vans/trucks running and refueled quickly.
However, the advantages of ICE vehicles won't last forever, as EV technology continues to improve. Moreover, CEO Jim Farley's commitment to investing $5 billion in developing a universal EV platform and a $30,000 pickup by 2027 acknowledges Ford's need to be relevant in the EV age.
It's the right thing to do, but it remains a bet in an area where Ford has, thus far, failed to deliver. As such, Ford stock will only attract value investors willing to accept potential downside. At $13, Ford trades at 12.5 times its estimated 2025 earnings. That may seem cheap, but it will be expensive if its big EV bet fails.
Should you invest $1,000 in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $576,882!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,006!*
Now, it’s worth noting Stock Advisor’s total average return is 1,002% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 24, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
