Ford Stock Waiting Game: How Long Until These 2 Problems Get Fixed?

For many investors, Ford Motor Company stock presents an attractive entry point. With a price-to-earnings ratio hovering around 11, a dividend yield of nearly 4.5% supplemented by occasional special dividends, and exposure to the lucrative Ford Pro commercial business and future opportunities in driverless vehicles, the reasons to consider Ford shares seem compelling. But here’s the critical question: how much longer should you wait before jumping in? The answer hinges on whether the automaker can successfully resolve two major operational headwinds that are currently weighing on the business.

The Recall Crisis That Won’t Go Away

Ford’s quality control challenges have reached an uncomfortable milestone. In 2025, the automaker set a troubling record with 153 recalls affecting approximately 13 million vehicles globally. This wasn’t a one-off event—it far surpassed 2024’s count of 89 recalls, signaling an accelerating trend rather than a temporary spike.

These recurring quality issues translate directly to the bottom line. During the second quarter of 2024, Ford’s warranty expenses surged by $800 million as the company grappled with recall-related costs, causing it to miss Wall Street’s earnings expectations. Beyond the immediate financial impact, leading the automotive industry in recalls carries a less visible but equally damaging consequence: it severely undermines brand reputation and makes it exponentially harder to win over customers from competing brands—one of the most costly endeavors in the automotive sector.

CEO Jim Farley has made quality improvements a strategic priority in recent years, and the company has increased its investments in manufacturing excellence. However, the data reveals this remains a persistent challenge, particularly because many recalls trace back to older vehicles in Ford’s global fleet. Until warranty costs stabilize and the recall count demonstrates a sustained downward trend, this issue will continue to pressure profitability metrics and shareholder confidence. Investors should monitor quarterly earnings reports carefully for signs of improvement, with a realistic 12 to 18-month window needed to see meaningful progress.

Can Ford’s EV Turnaround Happen in Time?

Ford’s foray into electric vehicles tells a story of ambitious strategy meeting market reality. The company’s Model-e division, responsible for all EV operations, hemorrhaged over $5 billion in losses during 2024 alone. While that figure appears alarming at first glance, it also represents a substantial opportunity if Ford can pivot the operation toward profitability.

Recognizing the challenge, Ford has fundamentally repositioned its electrification strategy. Rather than doubling down on full-electric vehicles before the market was ready, the company took a $19.5 billion special charge to redirect resources toward hybrids—which in many cases generate margins comparable to or exceeding traditional gasoline-powered vehicles. This strategic reset demonstrates management’s willingness to adapt when market conditions dictate.

The path forward involves more affordable EV options. Ford plans to launch a midsize electric pickup with a targeted price point around $30,000 in 2027, supported by a newly developed Universal EV Platform designed for cost efficiency. Critically, Ford has signaled that this model is expected to achieve profitability early in its life cycle—a departure from the typical EV playbook where manufacturers accept losses during market ramp-up phases.

The realistic timeline here is longer. Don’t expect Model-e to swing into profit before 2027 at earliest, with meaningful margin contributions likely not arriving until 2028 or beyond. The company’s hybrid strategy should show improvements sooner, possibly within 12 months, but the full transformation of Ford’s electric vehicle operation remains a multi-year project.

Putting It All Together

Ford possesses several attractive fundamental attributes: a solid balance sheet, shareholder-friendly dividend policies, and strategic positioning in future technologies like artificial intelligence and autonomous driving. The automotive market opportunity remains substantial for a company with strong execution.

However, the time until Ford becomes a compelling buy depends on demonstrable progress on these two fronts. Quality metrics need to improve materially and consistently, with warranty costs declining as a percentage of revenue. The EV division requires a clear inflection point where quarterly losses are shrinking visibly quarter-over-quarter.

For patient investors, a 12 to 24-month observation window might be prudent. Monitor Ford’s upcoming quarterly reports for signs that recall rates are trending downward and that Model-e losses are narrowing. Once those improvements become evident, Ford’s valuation and dividend yield will likely justify a position. Until then, Ford remains a stock for those willing to wait for corporate problems to be solved before committing capital.