Ford Surpasses Q4 2024 Earnings Expectations, But Stock Dips Amid EV Losses

Ford Motor Company has reported impressive financial results for the fourth quarter of 2024, exceeding Wall Street’s earnings expectations.

However, the automaker’s stock took a hit in after-hours trading as investors reacted to ongoing losses in its electric vehicle (EV) division and a cautious outlook for the coming year.

Earnings Beat and Record Revenue

Ford announced a quarterly revenue of $48.2 billion, surpassing the anticipated $43 billion, and achieved an adjusted earnings per share (EPS) of $0.39, beating the forecasted $0.33.

This strong performance reflects a significant year-over-year improvement, with a notable increase in adjusted EBIT compared to Q4 2023.

For the entire year, Ford recorded revenue of $185 billion, solidifying its position as a key player in the automotive industry.CEO Jim Farley celebrated these results, stating that “Ford is becoming a fundamentally stronger company.”

He highlighted the diverse product lineup and robust performance in the commercial vehicle sector as key drivers of growth.

EV Segment Struggles and Stock Reaction

Despite the positive earnings report, Ford’s Model e electric vehicle division continues to pose challenges. The unit reported a staggering full-year loss of approximately $5.1 billion, with $1.4 billion lost in Q4 alone.

The company sold over 97,000 EVs last year but faced significant pricing pressures and intense competition from rivals like Tesla and GM.

Notably, Ford incurred losses of about $37,000 per EV sold during the quarter due to rising costs and declining revenue.Investors reacted to these ongoing losses and Ford’s cautious outlook for 2025 by selling off shares, leading to a decline in stock price during after-hours trading.

The automaker anticipates adjusted EBIT of between $7 billion and $8.5 billion for 2025 but warned of potential headwinds from tariffs and reduced federal EV incentives.

Looking Ahead

As Ford navigates these challenges, CEO Farley expressed optimism about improving EV profitability through better cost management and quality enhancements in the upcoming year. However, the company projects further losses for its EV business, estimated between $5 billion and $5.5 billion.

In response to market conditions, Ford plans to refine its EV strategy while emphasizing hybrid models, which have shown strong growth potential.

Farley noted that hybrids remain a “fantastic narrative” for the company as it seeks to balance profitability with innovation.

While Ford celebrates record revenues and improved earnings, investor concerns about its EV division highlight the complexities of transitioning to an increasingly competitive electric vehicle market.

The stock’s reaction underscores the delicate balance between strong traditional performance and the pressing need for profitability in electrification efforts.

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