Ford faces challenges as stock underperforms and profits decline

Ford's stock has increased only 55% over the past 20 years, significantly underperforming the S&P 500, which rose 647%. Recent financial results show a decline in net income and ongoing challenges with warranty costs and electric vehicle investments. In the second quarter of 2024, Ford reported a net income of $1.8 billion, down 9% from the previous year. The company's electric vehicle division has incurred a cumulative operating loss of $3.7 billion, impacting overall profitability. Analysts predict minimal revenue growth for Ford, with a projected increase of just 0.8% by 2026. Despite a high dividend yield of 5.27%, the stock has dropped 27% over the past decade, raising concerns about its long-term investment potential.