Ford Stock Price (NYSE: F) Makes New 52 Week Low

Ford's stock price (NYSE: F) has hit a new 52 week low in trading today at $8.44, with the stock harshly impacted by tariffs, down 13.55% in the past 5 days. With much of the supply chain tied up in neighbouring countries, Ford shares have declined 36.15% over the past 12 months to multi year lows.

In a bid to increase sales, the company has announced significant price reductions across its entire lineup, extending employee-level discounts to all customers. This strategic move is in response to recent U.S. tariffs designed to encourage the purchase of American-built vehicles. The initiative, labeled “From America for America,” aims to leverage the increasing consumer shift towards domestic products.

Ford is uniquely positioned to capitalise on its ample stockpile, which exceeds four months' worth of inventory. This enables the company to provide these discounts without halting production.

In March, Ford witnessed a remarkable surge in car sales, with retail figures climbing by 19% and electric vehicle (EV) sales skyrocketing by 94%. This uptick is partially attributed to the U.S. government's imposition of a 25% tariff on all imported vehicles, along with a 10% minimum on all imports, which was announced by President Donald Trump. The tariffs primarily impact several countries, but most goods from Mexico and Canada that comply with United States-Mexico-Canada Agreement (USMCA) regulations are exempt.

Despite the advantageous position Ford holds, given that 80% of its U.S. sales come from vehicles built domestically, the company still faces challenges. Tariffs on auto parts, steel, and aluminum could increase production costs, pressing Ford to manage these expenses while maintaining competitive pricing. Additionally, models like the Mustang Mach-E, Maverick pickup, and Bronco Sport SUV, manufactured in Mexico, could see future price adjustments due to these tariffs.