Ford Motor Co. (F) Powers Past Market as May Sales Impress Investors

TLDR

Table of Contents

Ford stock rose 2.1% to $10.19 after reporting May vehicle sales up 16.3% year-over-year to 220,959 units
F-150 truck sales climbed nearly 15% to 79,817 units, while hybrid sales jumped 29% to 22,719 vehicles
Electric vehicle sales dropped 25% to 6,726 units in May, continuing a downward trend
Ford’s employee pricing promotion runs through early July, potentially boosting near-term sales
Analysts expect sales momentum to slow in the second half due to tariff-related price increases

Ford Motor shares gained ground Tuesday following a strong May sales report that showed the automaker bucking industry trends. The stock closed up 2.1% at $10.19 as investors digested mixed signals about the company’s near-term prospects.

The Dearborn-based automaker reported U.S. vehicle sales of 220,959 units in May, representing a 16.3% increase from the same month last year. This performance stood out in a softening market environment.

Ford’s flagship F-150 pickup truck continued its strong performance with 79,817 units sold, marking an increase of almost 15% year-over-year. The truck remains a key profit driver for the company and its steady sales provide some stability.

Every legend has its origins
and the F-150’s story is written in grit, steel, and generations of getting it done.
From classic workhorses to today’s powerhouses, this truck’s been Built Ford Tough since day one.#YourQualityFord #FordTruck #FordF150 #FordRaptor pic.twitter.com/sFYNkvXjNZ
— Your Quality Ford Dealers (@yourqualityford) June 3, 2025

Hybrid vehicle sales provided another bright spot, jumping 29% to 22,719 units. This growth comes as consumers increasingly seek fuel-efficient alternatives without fully committing to electric vehicles.

Electric Vehicle Struggles Continue

Battery electric vehicle sales told a different story, falling 25% to 6,726 units including the Mustang Mach-E. This decline reflects broader challenges facing the EV market as consumer adoption has slowed.

For the second quarter overall, Ford has sold nearly 430,000 vehicles to American consumers, up 16% from the prior year period. This represents a strong start to the year for both Ford and the broader automotive industry.

Industry data shows March and April sales annualized to 17.8 million and 17.3 million vehicles respectively. These figures exceed the sub-16 million annual rates seen in 2023 and 2024, though 2025 projections remain modest.

Citi analyst Mike Ward suggests some of this strength stems from tariff pre-buying behavior. Consumers appear to be rushing purchases before expected price increases take effect later this year.

Ford’s current employee pricing promotion, which allows regular buyers to pay employee rates, runs through early July. This incentive program likely contributed to May’s strong results and should support near-term sales.

Price Pressures Loom

The company faces headwinds from new tariff policies that impose a 25% import duty on vehicles. Ford imports approximately 20% of its domestic sales, primarily from Mexican facilities.

Management has already announced price increases on select models to offset these higher costs. The timing and magnitude of these changes will likely impact demand in the second half of the year.

Ward expects May’s industry-wide annualized sales rate to come in around 15.8 million vehicles, suggesting momentum slowed throughout the month. This deceleration could signal challenges ahead.

Current industry forecasts predict sales will drop 5% to 10% in the second half compared to the first six months of 2025. This normalization reflects the unwinding of tariff-driven purchasing behavior.

Ford shares remain roughly flat year-to-date and down 5% since the November presidential election. The stock currently trades at a forward price-to-earnings ratio of 9.15, below the industry average of 10.35.

Analysts project Ford will report earnings of $0.32 per share for the upcoming quarter, representing a 31.91% decline from the prior year. Full-year earnings estimates call for $1.11 per share, down 39.67% year-over-year.

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