Ford long-term growth challenges

Ford's US sales plummeted 10.3% YoY in Q2, driven by F-Series production issues and a 40.7% drop in EV sales, reported on July 7. The automaker sold 549,200 vehicles, down from 612,096 in Q2 2021. Ford's stock has since slipped nearly 20% from its late-May peak.

This narrative impacts the automotive sector, particularly automakers and EV manufacturers. Supply chain disruptions and waning EV demand have pushed Ford's stock down, potentially affecting investor sentiment towards other automakers. The company's pivot towards electric vehicles and energy storage systems is now under scrutiny.

Investors should watch Ford's Q2 earnings report, scheduled for July 27, to assess the financial impact of these sales declines. Additionally, the company's progress in hiring veteran engineers to improve vehicle quality and its plans to mitigate a potential blue-collar worker shortage will be crucial to monitor.