Ford Stock Plunges Amid Concerns Over Electric Vehicle Plans and Quality Issues

Ford's new assembly line and EV plans have sparked concerns about quality issues and risks. The automaker has already had 100 recalls this year, prompting worries about the success of its new production process. A recent recall of Mustang, Mach-E, and Nautilus vehicles due to burnt diode issues in LED Driver Modules further raises concerns. Analysts have a Hold consensus rating on Ford stock, with some questioning the company's ability to overcome its quality issues and execute its new plans successfully.

Ford Motor Company's ambitious plans to revolutionize its vehicle assembly and electric vehicle (EV) production have sparked significant concerns among investors and industry analysts. The automaker's recent recall of over 21,000 vehicles due to headlight malfunction issues, along with a series of other recalls this year, has raised eyebrows about the success of its new production process and the quality of its EVs [2].

Ford's new assembly line, the Ford Universal EV Production System, aims to simplify vehicle assembly for safety, quality, and speed. However, the recent recall of Mustang, Mach-E, and Nautilus vehicles due to burnt diode issues in LED Driver Modules has underscored the challenges the automaker faces in implementing this new system [2]. The recall, which affects vehicles manufactured between March 4, 2025, and July 24, 2025, highlights the potential risks associated with Ford's new production methods.

In addition to the recall concerns, Ford's shift in focus to smaller, more affordable EVs has led to delays in its flagship electric truck and van launches. The next-generation full-size electric pickup, known internally as "Project T3," has been pushed back from its initial 2027 target to 2028. Similarly, the E-Transit electric van has been delayed from 2026 to 2028 [3]. These delays, while aimed at reducing costs and improving profitability, could potentially impact Ford's ability to compete in the EV market.

Analysts have expressed a Hold consensus rating on Ford stock, with some questioning the company's ability to overcome its quality issues and successfully execute its new plans [4]. The automaker's stock has underperformed its closest peer, General Motors, and has declined in value compared to its Italian American counterpart, Stellantis [3]. Despite these challenges, Ford's forward price-to-earnings ratio remains below the industry average, indicating a potential investment opportunity for those willing to take on the risks associated with the automaker's new strategies.

As Ford continues to navigate the complexities of its new assembly line and EV plans, investors and financial professionals will be closely watching the company's ability to address quality issues and deliver on its promises. The success of these initiatives will be crucial in determining Ford's future in the competitive EV market.

References:
[1] https://batteriesnews.com/ford-5b-bet-on-america-innovation-meets-efficiency-in-new-battery-ev-platform-assembly-process-and-midsize-truck/
[2] https://www.usatoday.com/story/money/cars/recalls/2025/08/14/ford-recall-mustang-mach-e-lincoln-navigator/85658633007/
[3] https://finance.yahoo.com/news/ford-trading-ev-delays-long-131900860.html
[4] https://www.marketscreener.com/news/consensus-cloud-beats-q2-adjusted-eps-estimates-raises-fy-guidance-ce7c5edcd98cf227