Ford Stock Slips Toward Fourth Day Of Losses After Wolf Research Downgrade: Retail Sentiment Weakens

Wolfe flagged concerns about Ford’s cost structure and believes 2025 guidance could disappoint as these issues aren’t fully reflected in current Wall Street estimates.

Ford Motor Co. shares slid over 1% early Thursday, on track for a fourth consecutive day of losses, as retail sentiment soured following a downgrade from Wolfe Research. 

The brokerage cut its rating to ‘Underperform’ from ‘Peer Perform,’ setting a price target of $8.

Wolfe Research warned that Ford faces significant downside risk heading into 2025, a year expected to be challenging for automakers industrywide. 

The analyst pointed to potential price deflation and an absence of inventory restocking as cyclical pressures, compounded by Ford’s recent inventory, buildup in the fourth quarter. 

Wolfe also flagged concerns about Ford’s cost structure and believes 2025 guidance could disappoint as these issues aren’t fully reflected in current Wall Street estimates.

The downgrade came on the heels of Ford’s announcement of robust November U.S. sales. 

The automaker delivered approximately 166,000 vehicles last month, a 14% year-over-year increase, bouncing back from the United Auto Workers’ labor stoppage in 2023. 

Year-to-date, Ford’s U.S. deliveries have risen by 5% to about 1.9 million vehicles.

Ford’s electric vehicle (EV) sales set a monthly record in November, with nearly 11,000 units sold. This includes almost 6,000 Mustang Mach-Es, 3,600 F-150 Lightnings, and more than 1,200 e-Transit vans, reflecting gains across all models. 

Despite this achievement, skepticism lingers. 

Ford has scaled back its EV investments amid buyer hesitation over high prices and inconsistent charging infrastructure. 

Last month, the company announced plans to cut 4,000 more jobs in Europe, retreating further in a region where EV adoption has slowed.

Retail sentiment on Stocktwits shifted from ‘neutral’ to ‘bearish’, accompanied by a spike in message volume. Commenters criticized Ford’s management efficiency and the perceived overpricing of its EV lineup, with many doubting mainstream affordability.

Ford’s financial outlook has also dimmed. Wall Street estimates the company will generate $9.7 billion in operating profit for 2025, down from projections of $10 billion in 2024 and the $10.4 billion reported in 2023. 

In October, Ford had cautioned that 2024 earnings would likely land at the low end of its forecast due to persistently high warranty costs.

Ford shares have declined approximately 14% year-to-date, underperforming broader markets. 

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