Ford's Q2 Profits Hit by Quality Issues and EV Losses

Warranty costs and lower EV demand lead to significant earnings miss, causing stock to drop sharply.

Overview

Ford's second-quarter net income fell 4.7% due to rising warranty and recall costs.
The automaker missed Wall Street earnings expectations, reporting adjusted earnings of 47 cents per share.
Ford's EV unit reported a $2.5 billion loss in the first half of 2024, prompting cuts to EV production and spending.
Despite increased revenue, Ford's stock dropped over 11% in after-hours trading.
Ford maintains full-year earnings guidance but faces ongoing challenges with quality and profitability.