Ford Motor Stock Stumbles as Recalls Test Investor Nerves

Ford Motor ( (F) ) has fallen by -9.26%. Read on to learn why.

Ford Motor shares slid 9.26% over the past week, extending a sharp pullback that began after the company announced two fresh recalls covering more than 615,000 vehicles. The larger recall targets over 600,000 SUVs and crossovers built between 2020 and 2022 for faulty windshield wiper motors that can fail and impair visibility, while a smaller recall of around 11,000 vehicles involves a driveshaft weld issue that could cause sudden loss of power. The news rekindled investor worries about Ford’s warranty and quality costs, knocking the stock more than 4% in a single session and helping drive the week’s decline.

The sell-off comes despite a broader narrative that is turning more favorable for Detroit automakers. A looser regulatory backdrop under the new U.S. administration is easing fuel‑economy and greenhouse‑gas requirements, allowing Ford to pivot away from money‑losing electric vehicles and lean harder into its most profitable trucks and SUVs. Bank of America analyst Alexander Perry reinstated coverage of Ford with a Buy rating and a $17 price target, arguing that the company can lift its EBIT margin from 4.8% in 2026 to 8% with a meaningful step-up expected in 2027, supported by its dominant F‑Series pickups and higher‑trim models such as the Ranger Raptor.

Still, the Street remains cautious, with a Hold consensus reflecting concerns about recent earnings and softer overall sales. Ford’s latest quarterly revenue and profit both came in below expectations, and its February 2026 sales showed steep declines in electric vehicles even as traditional SUVs and the Mustang posted strong gains. Analysts’ average 12‑month target of $14.02 implies only modest upside from current levels, suggesting that while some see opportunity in the pullback, the market wants clearer proof that Ford can contain quality issues, execute its truck‑ and SUV‑led strategy, and steadily narrow losses in its EV unit before re‑rating the stock higher.