Ford Motor Company reported a troubling 0.9% drop in U.S. unit sales for November, with a 61% crash in all-electric sales accelerating the decline. This signals potential trouble for the EV industry, especially with the expiration of the $7,500 federal EV tax credit in October. The impact could spread to Tesla, the EV leader, as competition heats up globally. Tesla, founded in 2003, faces cooling momentum in 2025 due to competition, macroeconomic pressures, and a shifting investor focus towards AI and robotics. Tesla’s Q3 results showed revenue growth but also margin pressure, setting up challenges for the future.

Ford’s significant decline in EV sales serves as a warning sign for the entire industry, including Tesla, which saw a surge in Q3 deliveries driven by the federal tax credit. Analysts are divided on Tesla’s future, with a consensus “Hold” rating and price targets ranging from $385.69 to $600. Amidst growing competition, pricing pressures, and shifting consumer demand, Tesla faces uncertainty in maintaining its market share and profitability. Investors should closely monitor Tesla’s performance as the post-incentive landscape evolves.

Read more at Barchart: Ford Just Reported an Absolute Collapse in Its EV Sales. That Could Be a Key Warning for Tesla Stock.