Is Ford a Buy Now Amid Electric Vehicle Surge and Long-Term Bottom Formation?

Ford Motor Company (F) delivered a strong performance in 2025, supported by record revenue, solid margins, and rising demand for electric and hybrid vehicles. The company expanded its presence across key markets while maintaining cost control and strong cash flow.

Despite facing external risks like tariffs and recalls, Ford continued to show operational strength. Technical charts also suggest a potential long-term bottom with bullish signals building. This article reviews Ford’s latest financials, growth drivers, risks, and technical outlook to understand the next move in the stock price.

Record Revenue and Operational Strength in 2025

Ford delivered record revenue of $50 billion in Q2 2025, driven by strong US sales that grew seven times faster than the industry average. The company’s compelling vehicle lineup, including its truck portfolio, Bronco, and electrified models, supported this robust performance. The chart below shows the quarterly revenue of Ford, which has surged since 2020.

 

On the other hand, the profitability remained strong despite external challenges. The company reported adjusted EBIT of $2.1 billion, absorbing a significant ~$800 million impact from tariffs. Ford Pro contributed $2.3 billion in EBIT through its diverse revenue streams across vehicles, software, and services.

Moreover, Ford continued to reduce costs, marking the fourth consecutive quarter of year-over-year cost improvements, excluding tariff effects. This cost discipline supported margins and demonstrated operational efficiency under the Ford+ strategy.

Moreover, the cash flow and liquidity remain strong. The company announced a $0.15 dividend for Q3 and maintained strong cash and liquidity balances of over $28 billion and $46 billion, respectively. It also secured an additional $4 billion in export financing to enhance flexibility.

Ford generates a strong adjusted free cash flow of $2.8 billion in Q2 2025 after a negative outflow of $1.5 billion in Q1, as shown in the chart below. Ford Credit distributions also increased to $0.5 billion, the highest in five quarters.

Ford Pro’s growth engine remained a standout. The subscriptions for Ford Pro increased 24% to 757,000, with high-margin software and services making up 17% of Ford Pro’s EBIT. As a result, Ford strengthened its presence not only in the US but also in global markets, including Canada, Europe, and the Middle East.

EV Sales Surge and Emerging Challenges

Ford posted strong August sales growth, driven by a surge in demand for electric and hybrid vehicles. EV sales jumped over 19%, while hybrid sales rose more than 14%, marking their best month to date. Internal combustion engine vehicles also grew modestly, reflecting balanced performance across powertrains.

The chart below shows projected EV sales, which are expected to reach $2,529 billion by 2034. This strong growth opens the door for EV-focused companies to capitalise on rising demand.

Moreover, the SUVs, trucks, and cars all recorded gains, with standout models like the Expedition, Mustang Mach-E, and Bronco posting double-digit year-over-year increases. These results show that Ford’s product strategy is working, especially as consumer demand shifts toward electrified and performance vehicles.

However, the company is facing challenges on multiple fronts. Ford announced a major recall affecting over 355,000 vehicles due to a software glitch in the instrument panel display. Although the issue can be fixed through an over-the-air update, the recall may temporarily impact brand trust and service costs. The models affected include key pickups and Super Duty trucks, which are important to Ford’s revenue base.

In addition, rising trade tensions present a new headwind. The US administration has expanded Section 232 tariffs to cover hundreds of new steel and aluminium products, including parts critical to EVs and exhaust systems. These new duties could raise Ford’s input costs, especially for electric vehicles and heavy trucks. While the tariffs may benefit domestic steel suppliers, they could also pressure Ford’s margins if suppliers cannot meet volume and quality demands. As a result, cost control and supply chain flexibility will become even more important to Ford’s strategy in the coming quarters.

Technical Charts Signal Long-Term Bottom Formation

The long-term outlook for Ford Motor remains uncertain, as seen in the yearly chart below. The stock reached record highs in 1999. However, it failed to sustain those levels and has traded at lower levels over the past 25 years. Historical price action shows that when the stock drops to extreme lows, it often forms a major bottom and then moves steadily higher.

These major bottoms were observed in 1981 at 0.64, in 1991 at 4.30, in 2008 at 1.01, and in 2020 at 3.96. Notably, the 2008 bottom formed during the Great Recession and prices have followed an ascending channel pattern from that low point. The stock has formed significant bottoms within this ascending channel in 2008 and 2020. Now, the price has approached the same support level of this ascending channel in 2025.

The recent rebound from this support suggests a bullish pattern is forming. This strong bounce indicates that Ford may be establishing a long-term bottom in 2025. If this holds, prices could trend higher over the coming months and years.

Moreover, the quarterly chart for Ford Motor also shows that the stock formed a bullish hammer in Q2 2025. This was followed by a continuation in Q3 2025, indicating that prices may trend higher in the coming months. The chart highlights a red trendline drawn from the Great Recession low, which now aligns with the $6 region. Any correction toward this level may offer a long-term buying opportunity for investors.

The chart shows that the resistance for Ford remains near the $18 level. A breakout above $18 would push the stock into the orange zone, a strong consolidation area that extends up to $25. A clear break above $25 would likely trigger a strong surge in Ford’s price, potentially opening the door to much higher levels.

Key Technical Levels to Watch for a Breakout

The monthly chart for Ford Motor shows strong consolidation patterns since 2022. Currently, the stock is trading around the same level it was at during the early 2000s. This reflects limited long-term price movement, despite several sharp but contained bullish moves. However, the prolonged consolidation since the beginning of the 21st century now appears to be forming a bullish price structure.

A breakout above the $25 level would be a significant bullish signal. Both the 50-day and 200-day SMAs are flattening, suggesting continued consolidation but also the potential for a future breakout. Any short-term surge in Ford’s price could mark the beginning of a larger trend. Moreover, the RSI is approaching above the mid-level, indicating that bullish momentum is gradually building in Ford stock.

The weekly chart below for Ford Motor shows that prices are trading within the red dotted trendline and facing strong resistance at the $12.60 level. A breakout above $12.60 could trigger a strong surge and push the stock toward the next major resistance near $25. Since 2022, the price action has been compressing within this trendline, signalling a potential breakout. This price compression suggests that a move above $12.60 may lead to higher prices in the coming weeks.

Undervalued Metrics Highlight Long-Term Opportunity

Ford’s current trailing price-to-earnings (P/E) ratio stands at 14.8×, well below its 10-year average of 36.8×. The ratio is above the industry average but remains 28% lower than the consumer cyclical sector average of 20.54. This discount may indicate a potentially attractive entry point for value-focused investors.

Ford also trades at 0.25× price-to-sales and just over 1× price-to-book, highlighting its status as a low-cost option in the auto sector. These valuation ratios suggest that Ford remains on the lower end of the pricing spectrum compared to peers. This reinforces its appeal to investors seeking undervalued opportunities.

Despite Ford’s low valuation, its stock has underperformed its peers over the past three years. As shown in the chart below, Ford gained just 2.01%, while General Motors Company (GM) surged 76.13% and Honda Motor Co. (HMC) rose 54.00%. On the other hand, Porsche dropped 31.38%, slightly worse than Ford. This divergence shows that investors remain cautious about Ford’s growth outlook. The underperformance signals a need for Ford to show clear progress in profitability and its Electric Vehicle (EV) strategy to unlock a higher valuation.

Tariffs, Recalls, and Macro Pressures Remain

Ford faces rising cost pressures from new tariffs on steel and aluminium imports. These duties now cover key components used in EVs and trucks. If suppliers fail to meet demand or raise prices, Ford’s margins could tighten, especially in its growing EV segment.

The recent recall of over 355,000 vehicles poses reputational and financial risks. While the issue involves a software fix, it affects high-volume trucks that are central to Ford’s profits. Any delays in resolving the problem could dent consumer confidence and increase warranty-related costs.

Moreover, the global demand trends and policy shifts remain unpredictable. Slowing exports, currency volatility, and tight consumer credit could weigh on vehicle sales in key markets. If interest rates stay high or global growth stalls, Ford’s future earnings may come under pressure despite its strong product lineup and cost discipline.

Final Take — Is This Ford’s Moment to Buy?

Ford’s 2025 results show clear operational strength with the revenue hitting record highs and Free cash flow turning positive. Moreover, Ford Pro continues to scale with high-margin software and services. These wins reflect solid fundamentals and a product lineup that aligns with market trends.

However, tariffs and recalls threaten to erode margins and brand trust. Supply chain disruptions and global headwinds could limit upside. Investors will closely watch Ford’s ability to manage these challenges. Ford may stay aggressive on cost control and execution in its electric transition.

From a technical perspective, the stock shows bullish patterns. The consolidation during the last three years suggests positive price action. In 2025, the price is starting to break out of this range. A move above $12.60 will likely push the stock toward $18. Moreover, a breakout above $18 would confirm a long-term bottom and trigger a strong upside move. Investors may consider buying the stock at current levels to benefit from future rallies.