Ford Shares Dip 1.9% on $2B Tariff Headwinds and EV Losses as $870M Volume Ranks 116th in Market

On July 30, 2025, Ford (F) closed with a 1.90% decline, trading on $0.87 billion in volume—a 34.1% increase from the previous day. The stock ranked 116th in trading activity across the market. Meanwhile, Ford reported Q2 earnings and revenue above estimates but flagged a $2 billion annual tariff-related headwind, up from an $800 million second-quarter impact. The company revised full-year adjusted EBIT guidance to $6.5–$7.5 billion, reflecting mitigation efforts such as pricing adjustments and bonded rail logistics. Despite these steps, Ford’s Q2 EBIT was pressured by $800 million in tariffs and a $570 million charge linked to a recall of 700,000 SUVs over fire risks.

The company’s business segments showed mixed results. Ford Blue, its traditional vehicle division, generated $25.8 billion in revenue and $661 million in EBIT. Ford Pro, its commercial truck unit, reported $18.8 billion in revenue and $2.318 billion in EBIT. However, Ford Model e, its electric vehicle arm, posted a $1.329 billion EBIT loss on $2.4 billion in revenue. CEO Jim Farley highlighted plans to unveil new EV strategies on August 11, emphasizing U.S. production amid challenges from expiring consumer tax credits.

Despite the tariff headwinds, Ford’s Q2 U.S. sales rose 14% year-over-year to 612,095 units, outpacing industry growth. Hybrid and gas-powered models drove gains, while EV sales declined 31%. The company’s “employee pricing for all” initiative contributed to strong sales, though rising warranty costs and trade policy disputes—such as 25% tariffs on U.S.-built vehicles in Canada and Mexico—remain concerns. Ford reiterated its commitment to offsetting costs through pricing and operational adjustments.

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