Ford Motor Co. shares have plummeted from about $25 to near $9.10, with substantial losses in their EV transition and uncertain sales in China. CEO Jim Farley highlighted the ongoing chaos and high costs attributed to tariffs under the new administration that may inflate vehicle prices by 20%. The EV strategy, projected to cost over $30 billion, is unlikely to break even by 2025, with Ford anticipating losses greater than last year’s $5.1 billion. Furthermore, competition from inexpensive Chinese EVs poses an existential threat, intensifying Ford's precarious situation in the global market.
Ford's most recent challenges could substantially undermine its financial situation. According to S&P Global Mobility, tariffs on cars and car parts from Mexico and Canada could increase prices of new vehicles in the U.S. by up to 20%.
CEO Jim Farley stated, 'So far, what we're seeing is a lot of cost and a lot of chaos,' regarding the high costs from tariffs and impacts from the new administration.
If inexpensive Chinese EVs entered the U.S. market, it would severely damage Ford. Farley considers Chinese car companies an 'existential threat' to the company.
As the US and China square off over various issues, Ford has become the American company most at risk due to its exposure to the Chinese economy.
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