What Could Go Wrong With Ford Stock?
The most concerning figure for a Ford Motor (F) holder is the loss at model e. Management noted on the July 28 call that model e lost $919 million before interest and taxes in fiscal Q2 2026. This loss occurred on revenue of $1 billion, meaning the segment lost nearly as much money as it brought in. Is that loss getting smaller, and how big is it next to what the rest of Ford earns?
How Much Is Ford Losing On Model e?
Ford expects model e to lose about $4 billion in fiscal 2026. Management frames this forecast as an improvement, and the loss is indeed narrowing. Executives reported a 31% improvement in the segment’s loss during fiscal Q2 2026, even though its revenue declined. Against its own past, the unit is getting less bad, not worse. Yet its sheer size is what should worry a holder. Management expects Ford Blue to earn $5 billion to $5.5 billion before interest and taxes in fiscal 2026, and Ford Pro to earn $7 billion to $7.5 billion. Together, those two segments are projected to earn $12 billion to $13 billion, measured against the expected loss of about $4 billion at model e.
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How Ford Stock Is Priced Today
Ford stock currently trades at 0.264 times its sales over the last twelve months, compared with 3.1 times for the S&P 500. The shares have also lagged the broader market lately. From July 20 to October 16, 2026, Ford lost 10.2% including dividends, while the S&P 500 returned 3.2%. A low multiple is not new for the automaker. Over the last ten years, the price-to-sales ratio for Ford has not been above 0.616 at any quarter-end.
Ford Raised Profit Guidance Despite Model e Losses
During the July 28 call, Ford raised its full-year guidance for adjusted EBIT, its own measure of operating profit. Management increased the target to a range of $10 billion to $11 billion, which represents a $1 billion raise at the midpoint. This forecast offers the best case against investor worry: executives expect the company as a whole to stay profitable on that measure while model e loses money.
The harder year may be 2027. Management indicated that Ford will carry launch costs that year, especially for its battery storage business, Ford Energy, and for its universal EV platform. On the same call, an analyst asked whether all these moving parts add up to higher EBIT in 2027, and management said it is too early to say.
Ultimately, a holder should treat model e as a real risk that is shrinking, not a reason for alarm. The loss remains large next to what Ford Blue earns. Yet the loss is narrowing, and Ford still raised its guidance in the same quarter. The launch costs Ford faces in 2027 are what could change that view. When the automaker reports its full-year results, expected on or around February 8, 2027, the key metric to watch will be the model e loss for fiscal 2026 against management’s forecast of about $4 billion.
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