Ford Shares Surging Rapidly Today
In the dynamic world of automobile manufacturing, General Motors (GM) and Ford Motor Company (F) have been making headlines with their financial performances in 2025. While both companies face challenges such as tariff headwinds and supply chain disruptions, GM seems to be outperforming Ford in several key areas.
GM's fourth-quarter earnings surpassed analyst expectations, with earnings of $2.12 per share and revenue of $43.11 billion. This marked a 1.52% decrease in GM's share price, but the company's pricing remains strong despite economic pressure on U.S. consumers. The company's sales were also higher than expected, totalling $40.6 billion. These figures suggest that conditions may be better than initially feared.
In contrast, Ford's financial performance shows mixed results. While the company experienced strong revenue growth—$50.2 billion in Q2 2025, a 14% increase over estimates—its EV and software segment (Model e) remains deeply unprofitable, projected to lose up to $5.5 billion this year. Ford's aggressive strategy to grow its EV business, including price cuts on vehicles like the F-150 Lightning, has so far widened losses in the Model e unit.
GM, on the other hand, has been making strides in its EV market competitiveness and profitability. The company's broader and more integrated EV rollout, with models like the Bolt EUV and Hummer EV, has enabled it to increase EV sales faster and achieve better margins. GM's focused restructuring efforts to reduce inventory, implement cost cuts, and bolster product competitiveness have improved cash flow and profitability.
Looking ahead, GM plans to trim about $2 billion in costs over the next two years, while Ford could experience a pinch due to price cuts. Shares of Ford traded up as much as 5.3% on Tuesday, but the macro economy remains a concern for Ford heading into 2023.
As both companies prepare to release their fourth-quarter results—with GM reporting its results earlier this month and Ford set to do so on Thursday—investors will be closely watching to see how each company navigates the challenges ahead and continues to shape the future of the automotive industry.
[1] Ford's financial performance in 2025 shows mixed results compared to General Motors (GM), particularly influenced by price cuts on Ford’s electric vehicles (EVs) and supply chain dynamics. Ford experienced strong revenue growth overall—$50.2 billion in Q2 2025, beating estimates by about 14%—driven largely by its commercial vehicle business (Ford Pro) and traditional internal combustion engine (ICE) vehicle sales. However, its EV and software segment (Model e) doubled revenue but remains deeply unprofitable, projected to lose up to $5.5 billion this year despite efforts including EV price cuts to boost market share and compete globally. Supply chain improvements and cost management have helped Ford’s traditional business remain profitable, but tariff-related cost pressures continue to weigh on margins, especially given higher tariffs on Mexico and Canada facilities.
[2] GM's recent financial reports show a stronger turnaround, with a 20% sales jump in China and a 9.4% sales increase year-to-date, fueled by electrified vehicle volume jumping 50%. GM reported $44 billion in Q2 revenue with a solid 8.8% North American operating margin despite EV-related cost pressures. GM’s focused restructuring efforts to reduce inventory, implement cost cuts, and bolster product competitiveness have improved cash flow and profitability. Yet, GM also faces tariff headwinds, reflected in a 35% net income drop and a $1.1 billion impact in Q2 2025.
[3] Overall, GM appears to be outperforming Ford financially in 2025, especially in EV market competitiveness and profitability, despite both companies facing tariff and supply chain challenges. Ford’s aggressive EV pricing and supply chain improvements help support volume growth but have yet to translate into profitability in its EV business, while GM’s more balanced EV transition and cost efficiencies provide stronger financial momentum.
[4] Ford Motor Company (F) saw a decrease of 2.35% on Tuesday.
[5] Ford could experience a pinch due to price cuts.
- Despite Ford's revenue growth due to its commercial vehicle business and traditional internal combustion engine vehicle sales, its electric vehicles (EVs) and software segment, Model e, remains unprofitable, projected to lose up to $5.5 billion in 2025, while also facing challenges from supply chain disruptions and tariff-related cost pressures.
- General Motors (GM) has experienced a strong turnaround in 2025 with a 20% sales jump in China and a 9.4% sales increase year-to-date, driven by a 50% increase in electrified vehicle volume. Despite EV-related cost pressures, GM reported a solid 8.8% North American operating margin, and its restructuring efforts have improved cash flow and profitability. However, high tariffs have affected GM's net income, causing a 35% drop and a $1.1 billion impact in Q2 2025.
- Compared to General Motors, Ford's aggressive EV pricing strategy and supply chain improvements help support volume growth, but have yet to translate into profitability in its EV business. In contrast, General Motors' more balanced EV transition and cost efficiencies provide stronger financial momentum in the industry.
- On Tuesday, Ford's shares experienced a decrease of 2.35%.
- With price cuts, Ford could experience a financial pinch moving forward.
