• Ford stock fell more than 2% over the past week despite Farley teasing a low-cost EV to rival Tesla’s top models. 
• New “skunkworks” EV platform targets a ~$30,000 pickup by 2027, competing with the Tesla Model Y and Model 3.
• EV sales remain weak and analysts are cautious, though retail sentiment has recently turned bullish.

Shares of Ford Motor Co. have lost over 2% in the past week, even after CEO Jim Farley suggested the legacy automaker may finally have a credible answer to Tesla's two best-selling EVs.

Speaking on the Spike's Car Radio podcast last week, Farley teased an all-electric, affordable vehicle designed to go head-to-head with the Model Y and Model 3. "I think there's nothing else like it on the market," he said, adding that the project began with a covert team assembled four years ago, drawing talent from Formula 1 and Tesla. "That vehicle is radically different. I'm really excited to show everyone, maybe later this year or early next year."

“We'll have an all-electric, affordable vehicle to compete with Model Y and Model 3. I think there's nothing else like it on the market."

The stakes are high. The Model 3 and Model Y transformed EVs from niche luxury products into mainstream global bestsellers, and together drive the majority of Tesla's automotive revenue, which hit $69.52 billion last year. The Model Y in particular became the world's best-selling passenger car for three consecutive years from 2023 to 2025, with cumulative sales exceeding 4 million units.

Ford's EV Record Has Been Bumpy

The announcement comes as Ford and the broader U.S. auto industry have been pulling back on EV ambitions following the Trump administration's decision to scrap Biden-era federal purchase credits. Ford withdrew the F-150 Lightning from the market last year amid weak demand, and the Mustang Mach-E has yet to deliver the profits the company had anticipated.

Details on the new "skunkworks" EV remain sparse, but what's known is that Ford is building a Universal EV Platform designed to produce a family of affordable vehicles at scale. The first model will be a midsize four-door electric pickup with a targeted starting price of around $30,000, assembled at the Louisville Assembly Plant and expected to reach customers in 2027. Ford has described it as "as fast as a Mustang EcoBoost" with more passenger space than a Toyota RAV4, plus a frunk and a bed.

Sales And Analyst Sentiment Keep Caution On

The EV reveal hasn't been enough to offset a challenging near-term picture. Earlier this week, Wells Fargo trimmed its price target on Ford to $10 from $11, maintaining an 'Underweight' rating. The firm said most first-quarter trends are tracking as expected, but nearly all full-year drivers are moving in the wrong direction, flagging weaker China vehicle production, U.S.-Iran conflict risk, and fading foreign-exchange tailwinds as key headwinds.

Recent sales figures also reinforce the caution. In February, Ford's total U.S. vehicle sales fell 5.5% year over year to 149,962 units, while EV sales dropped 37.7% to 14,132 units. January told a similar story: total sales down 5.3% to 135,362 units, with EV sales down 25% and internal combustion engine sales down 2.3%.

Where Retail Stands On Ford Stock

Despite the headwinds, Ford has held up better than Tesla this year, down roughly 10% versus Tesla's 15% decline, and retail interest on Stocktwits has been building. 

Message volumes for Ford are up over 57% during this period, and sentiment has shifted from 'bearish' at the start of the year to 'bullish' as of Wednesday's close.

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