Ford (F) Stock Defies Logic: Jumps 3.35% Despite EV Sales Crashing 31.4% in Q2

Wall Street's latest head-scratcher: Ford shares revved up 3.35% while its electric vehicle sales skidded off a cliff. The automaker's Q2 EV deliveries plummeted 31.4%—apparently just a 'speed bump' for investors drunk on hopium.

Meanwhile, legacy automakers keep playing musical chairs with their growth narratives. First it's 'EVs are the future,' then it's 'hybrids will bridge the gap,' now it's 'actually, have you seen our ICE margins?'

Bonus jab: Nothing boosts a stock like missing expectations by only slightly less than analysts feared. The market's grading on a curve these days.

TLDRs;

• Ford stock gained 3.35% to $11.73 despite a 31.4% drop in Q2 EV sales.
• A major recall of over 300,000 Mach-e vehicles triggered the sharp decline in EV deliveries.
• Strong hybrid and gas-powered vehicle sales helped offset losses in the electric segment.
• Ford plans to bounce back with lower-cost EVs starting in 2027 to regain consumer trust.

Ford shares climbed 3.35% to $11.73 on Wednesday, defying a sharp downturn in the company’s electric vehicle sales for the second quarter of 2025.

The surprising stock uptick came despite a 31.4% year-over-year drop in EV sales, largely triggered by the temporary suspension of Mustang Mach-e deliveries following a major recall.

Mach-e Recall Disrupts Electric Momentum

Ford’s EV segment took a heavy hit after the company issued a recall for approximately 317,000 Mustang Mach-e units due to a safety issue involving faulty electronic door latches. The defect, which could potentially cause the doors to malfunction in high temperatures, led to a pause in Mach-e deliveries and stifled Ford’s overall EV momentum.

The impact was evident across the board. Sales of the Mach-e fell 19.5%, while the F-150 Lightning pickup dropped 26.1%. The E-Transit van fared even worse, plummeting 88% in the quarter.

Despite these setbacks, Ford’s EV misfortunes were partly offset by strong performance in its traditional and hybrid vehicle segments. Total vehicle sales increased by 14.2%, largely driven by robust demand for gasoline and hybrid F-series trucks. Over 216,000 of these models were sold during the quarter, underscoring continued consumer preference for non-EV options amid lingering concerns about electric vehicle reliability.

NEWS: Ford sold 16,438 EVs in the U.S. in Q2 2025, -31.4% YoY.

Units sold:
• Mustang Mach-E: 10,178 (-19.5% YoY)
• F-150 Lightning: 5,842 (-26% YoY)
• E-Transit: 418 (-88% YoY) pic.twitter.com/Zet4cPRjwh

— Sawyer Merritt (@SawyerMerritt) July 1, 2025

Hybrids Shine as Consumer Confidence Wavers

Ford’s hybrid offerings delivered a 23.5% increase in sales over the same period, reflecting a notable consumer pivot toward transitional electrification. As more buyers hesitate to fully commit to battery-electric vehicles due to concerns over charging infrastructure, range anxiety, and repair costs, hybrid models are becoming an increasingly attractive alternative.

This shift aligns with broader consumer sentiment captured in Deloitte’s 2025 Automotive Consumer Study, which found that nearly half of potential EV buyers still harbor concerns about the reliability of electric models. In that context, Ford’s hybrid strength suggests the company is well-positioned to cater to consumers seeking lower-risk, lower-commitment alternatives to full electrification.

Market Confidence in Ford’s Long Game

The modest rally in Ford’s stock price reflects investor confidence in the company’s broader strategy, despite near-term turbulence in the EV segment.

Ford executives have indicated that the EV supply chain and inventories should stabilize starting in July, with production of the Mach-e expected to resume later in the year.

Looking further ahead, Ford is doubling down on affordability as it plans to introduce electric vehicles priced below $30,000 by 2027. That pivot could place the automaker in a strong position to capture future demand, particularly as cost continues to be a major barrier to widespread EV adoption.

Long-Term EV Growth Remains Intact

Although Ford’s Q2 performance underscores the volatility inherent in the EV sector, it does not appear to signal a broader collapse. Industry data continues to point toward long-term growth, with EV registrations in Europe and the UK both rising over 20% year-to-date. Global forecasts also remain bullish, projecting the EV market to grow at an annual rate of 11% through 2034.

In that context, Ford’s short-term recall pain may ultimately serve as a strategic reset. With plans to scale production, streamline costs, and reintroduce its top-selling Mach-e safely, the automaker is betting on a future where reliability, affordability, and consumer trust define the next chapter of EV adoption.