Ford Stock Rises Despite EV Sales Slump, Hybrids Pick Up Slack

Ford Motor Co. shares defied expectations with a 3.35% gain to $11.73, even as the automaker reported a staggering 31.4% year-over-year decline in electric vehicle sales for Q2 2025. The paradoxical market reaction underscores shifting investor priorities in the automotive sector.

The EV sales collapse stemmed from a safety recall affecting 317,000 Mustang Mach-e units, forcing temporary delivery halts. Mach-e sales dropped 19.5%, while the F-150 Lightning and E-Transit van fell 26.1% and 88% respectively. Faulty electronic door latches that malfunction in high temperatures triggered the production pause.

Traditional combustion engines and hybrids carried Ford through the EV storm. Robust sales in these segments demonstrated the automaker's ability to balance transitional technologies while preparing its next EV offensive. The company plans to introduce lower-cost electric models starting in 2027, betting on affordability to revive its electrification strategy.