Ford Motor Co.’s stock tumbled 10% Friday after weaker-than-expected quarterly earnings and the withdrawal of guidance, adding to the recent selling pressure on its high-yield bonds.
The company said customers interested in EVs are “unwilling” to pay the vehicles’ premium prices and it paused billions of long-term investment in EVs due to that disconnect.Ford is the biggest issuer in the U.S. high-yield, or junk, market with some $72.4 billion of outstanding bonds, as the following chart from data solutions company BondCliQ Media Services shows. The bulk of its dollar-denominated bonds, or $15.9 billion worth, will nature in 2026.
“Our business is never short of challenges, especially right now with the evolution of the EV market,” Chief Executive Jim Farley told analysts in a call following results.
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