Should You Buy Ford Stock Under $15 in October? Here's Why Investors Should Pump the Brakes.
The company's shares have generated a total return of just 6% in the past five years.
Ford Motor Company, one of America's oldest industrial names, once revolutionized the automotive industry with Henry Ford's moving assembly line. Today, the company operates three key segments: Ford Blue for gas and hybrid vehicles, Ford Pro for commercial customers, and Ford Model e for electric vehicles (EVs). However, investors should exercise caution when considering purchasing Ford stock at its current price of under $15 per share.
The company has been heavily investing in EVs, but this strategy has not paid off as anticipated. Ford has been burning money in its EV segment, with operating losses totaling nearly $15 billion from the beginning of 2023 to the end of 2025. The demand for EVs has been weaker than expected, affecting not only Ford but also its industry rival Tesla, which reported flat automotive sales in Q2 2023 compared to Q4 2022.
In December 2025, Ford announced a significant charge related to its EV reset, expecting to record around $19.5 billion in special items, with the majority in the fourth quarter of 2025. This charge included asset impairments, write-downs, restructuring expenses, and the termination of a battery joint venture with SK On, resulting in a $6 billion hit to operating income.
Despite these challenges, Ford's management made tough decisions to cut losses and scale back its EV ambitions, aligning the business for future success. However, this move highlights how difficult it is for traditional automakers to pivot to EVs. The $19.5 billion in special items amounts to 40% of Ford's market capitalization, making it a dangerous use of capital for investors.
While the stock's current valuation appears attractive, with a forward price-to-earnings ratio of 7, Ford remains a risky investment. The company must constantly spend massive sums on capital expenditures to maintain its competitive position, and its attempts to go on the offensive with the Model e segment have resulted in costly missteps. Therefore, under $15 per share, Ford is best avoided, and investors should consider better opportunities elsewhere.
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