• Ford Motor (NYSE:F) recorded a $19.5b write down on its electric vehicle business, reflecting a shift away from fully electric models.
• The company is cancelling several planned EVs while redirecting capital toward hybrids and conventional gas powered vehicles.
• Ford is exploring cost sharing partnerships with Geely and has launched a new battery energy storage unit as part of its revised plan.

For investors watching NYSE:F, this reset comes with the stock recently closing at $13.8. Over the past year the share price is up 60.4%, with gains of 29.5% over three years and 58.8% over five years. Those returns sit against a current value score of 3, which may matter for readers comparing Ford with other large automakers.

Ford’s move to scale back pure EV ambitions, pursue partnerships with Geely, and build out a battery energy storage business presents a different mix of risks and potential rewards to assess. The company’s choice to lean harder into hybrids and gas powered vehicles, while still investing in electrification infrastructure, may influence how you think about its role in the auto transition in the coming years.

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Quick Assessment

• ⚖️ Price vs Analyst Target: At US$13.80, the share price is roughly in line with the US$13.76 analyst target, sitting well within the stated range of US$11 to US$16.
• ❌ Simply Wall St Valuation: The shares are described as trading 39.4% above estimated fair value, which flags a valuation premium to keep in mind.
• ✅ Recent Momentum: The 30 day return of about 0.4% is modest but positive following the EV write down announcement.

Check out Simply Wall St's in depth valuation analysis for Ford Motor.

Key Considerations

• 📊 The US$19.5b EV write down and pivot toward hybrids and partnerships with Geely reshapes where future capital and effort are likely to be focused.
• 📊 Watch how margins, cash flow and returns on the new battery energy storage unit evolve against the current P/E of 11.7x and the Auto industry average P/E of 23.95x.
• ⚠️ Current flags on dividend stability and debt coverage by operating cash flow make balance sheet and payout updates especially important after such a large write down.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Ford Motor analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.