• Earlier in July 2026, Ford Motor and China’s Geely Auto agreed to form a joint venture at Ford’s Valencia, Spain plant, where they plan to build multiple low- and zero-emission models for the European market starting in 2028, with Ford holding a two-thirds stake and Geely the remaining one-third.
• This partnership not only helps fill unused capacity and extends the life of a troubled factory, it also deepens Ford’s access to lower-emission technologies and new European customers amid intense global competition.
• We’ll now examine how Ford’s capacity-boosting joint venture with Geely in Valencia could influence the company’s evolving investment narrative.

Find 38 companies with promising cash flow potential yet trading below their fair value.

Ford Motor Investment Narrative Recap

To own Ford today, you have to believe the company can use its global scale, Ford Pro software and services, and a more flexible approach to electrification to improve margins while managing heavy legacy costs and intense competition. The Geely joint venture in Valencia supports that story by addressing European capacity and lower emission offerings, but the more immediate catalyst remains upcoming earnings, where analysts currently expect lower EPS and softer revenue. The biggest near term risk is ongoing EV and price pressure from global rivals.

Among recent news, the tentative labor agreement with Unifor in Canada looks particularly relevant. Stabilizing operations at Oakville and key engine plants helps reduce the risk of fresh labor disruptions just as Ford is reshaping its European footprint and rebalancing its EV and ICE mix. For investors watching cost discipline and production reliability as key supports for the Ford+ plan, this agreement complements the Valencia capacity news rather than changing the core catalysts on its own.

Yet even as Ford shores up plants and partnerships, investors should be aware that competitive EV pricing pressure could still...

Ford Motor’s narrative projects $189.9 billion revenue and $14.3 billion earnings by 2029. This implies fairly flat yearly revenue growth and a $20.4 billion earnings increase from -$6.1 billion today.

Uncover how Ford Motor's forecasts yield a $14.85 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were assuming Ford could lift margins enough to reach about US$12.5 billion in earnings on roughly US$192.7 billion of revenue before this Valencia news, which is a much rosier view than the consensus narrative around cost pressures and EV uncertainty. For you as a shareholder, the new joint venture and differing risk views highlight how widely opinions can diverge and why it is worth comparing several possible outcomes before deciding what you believe.

Explore 7 other fair value estimates on Ford Motor - why the stock might be worth as much as 37% more than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Ford Motor research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Ford Motor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ford Motor's overall financial health at a glance.

Want Some Alternatives?

Our top stock finds are flying under the radar-for now. Get in early:

• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource.
• Uncover the next big thing with 21 elite penny stocks that balance risk and reward.
• Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution.

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.