Interactive Investor

ii view: Ford celebrates record hybrid vehicle sales

This traditional car maker is boosting its hybrid business and the share price has comfortably outperformed electric vehicle maker Tesla this year. We assess prospects.

4th April 2024 15:49

by Keith Bowman from interactive investor

Share on


First-quarter US sales to 31 March

ii round-up:

Auto maker Ford Motor Co (NYSE:F) detailed sales growth better than the industry average ahead of its quarterly results on 24 April. 

Total US sales of its Ford and Lincoln brands climbed 6.8% year-over-year to 508,083 vehicles, exceeding industry average growth of 4.7%, fuelled by record demand for its combined petrol and battery powered hybrid vehicles.  

Shares in the S&P 500 company rose 3% following the announcement having come into this latest news up by close to a tenth year-to-date. That’s broadly similar to the S&P 500 index itself and in sharp contrast to a one third decline for electric vehicle (EV) only maker Tesla Inc (NASDAQ:TSLA).

Ford’s hybrid sales rose 42% compared with the first quarter of 2022 to a quarterly record 38,421 vehicles, comfortably outpacing a 2.6% rise by its traditional combustion vehicles to 449,439. 

Sales of its affordable compact Maverick pick-up truck surged by almost 82% to 39,061 as consumers opted for lower cost vehicles given still elevated borrowing costs and pressured disposable incomes. 

Total EV sales for the Michigan headquartered company soared 86% to 20,223, although from the relatively low base of 10,866 vehicles this time last year. Ford has previously deferred some investment spending on EVs given slower customer adoption than previously expected. 

US sales of its Transit van grew by a quarter year-over-year to 39,890, pushing overall commercial vehicle sales up 19% from a year ago to 55,295. 

ii view:

Started in 1903, Ford today operates across the three core businesses of Ford Blue, offering combustible and hybrid vehicles; Ford e, focused on electric vehicles; and Ford Pro providing commercial vehicles. Employing over 170,000 people globally, the US remains its biggest market accounting for two-thirds of sales, with Canada, the UK and Mexico other important markets contributing towards the balance.   

For investors, losses at its Ford e division were previously reported with required investment ongoing, and heightened borrowing costs are likely to be hindering some buyers using finance. A prior deal with its workers regarding wages has increased costs, while its operational execution has by management’s own admission previously fallen short of requirements.

On the upside, hybrid and EV sales are growing at a double-digit pace, with its market share in the key North American pick-up truck arena strong including the sale of petrol, hybrid, and EV versions. Group initiatives including a high focus on costs are ongoing, investments and joint ventures with Chinese vehicle makers persist, while its Transit van remains the best seller in its home US market. 

Time lost to rivals in developing and producing alternatives to traditional combustion engines has left Ford playing catch-up. However, strong US market positions, a forecast dividend yield of close to 4.5% and current share price momentum are likely to keep investors interested. 


  • Action to restructure the business taken
  • Attractive dividend yield (not guaranteed)


  • Previous operational challenges
  • Elevated costs

The average rating of stock market analysts:


These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Get more news and expert articles direct to your inbox