Ford Motor Company (NYSE: NYSE:F) experienced a 12% drop in its stock on Friday, following weaker-than-expected quarterly earnings and a significant loss of $1.3 billion in its electric vehicle (EV) unit. The company's decision to pause long-term investments in its EV unit, due to customer reluctance to pay premium prices for EVs, further contributed to the decline.
Data from BondCliQ Media Services revealed an increase in bond selling for Ford, which has approximately $72.4 billion in outstanding bonds, including $15.9 billion maturing in 2026. This comes amidst an evolving EV market that has been challenging for the auto industry giant.
Despite these setbacks, Ford reported a third-quarter profit of $1.2 billion, or 30 cents a share (39 cents when adjusted for one-time items), marking a recovery from last year's loss of $827 million. This rebound occurred even after accounting for a $2.7 billion impairment charge related to the investment in the now-defunct Argo AI venture.
Ford's revenue rose by 11% to reach $43.8 billion, falling slightly short of FactSet analysts' projected adjusted earnings of 46 cents a share on sales of $43.94 billion.
In contrast to Ford's recent stock performance, the S&P 500 SPX index has seen an 8% gain this year, while Ford's own stock has decreased by 11%. Despite this year's challenges and the evolving landscape of the EV market, Ford continues to navigate its financial position within the auto industry.
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