“We Didn’t Know What We Didn’t Know” Ford Stock (NYSE:F) Slips as Tesla Teardown Reveals Truths

Legacy automaker Ford F -1.86% ▼ is no stranger to a teardown. The idea that it can take apart commercially-available vehicles from other makers and see what they have done, in relation to how Ford does the same thing, is fairly common practice. But when Ford did this to a Tesla TSLA -2.15% ▼ car, the revelations gained for the electric vehicle (EV) market were surprising, and staggering. Ford investors were not pleased with the fact-finding tour, and sent Ford shares sliding over 1.5% in Friday afternoon’s trading.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Ford CEO Jim Farley noted, “I totally would have done it differently. I mean, look, we didn’t know what we didn’t know.” The concept of “unknown unknowns” goes back to the Donald Rumsfeld-era of the United States Department of Defense, and refers to those things that are so essentially alien to you that you did not even know it was possible to know them. And Ford got a look at some of those now-known-unknowns when it took apart a Tesla.

Farley noted that one of Ford’s biggest problems was an engineering bias toward the internal combustion engine that effectively tainted the work it did in building electrics. Farley further noted, “I was just absolutely flabbergasted. We didn’t know what was going on in (Tesla engineers’) minds. But now we understand. They had no prejudice. We had prejudice.”

2026: Year of the Truck

Reports also noted that truck enthusiasts should find 2026 very accommodating, as Bank of America analysts called on investors to buy Ford stock. Ford is expected to “…outperform expectations this year as automakers adjust to a new regulatory environment that favors their higher margin…” gas-powered cars.

Specifically, Bank of America’s BAC -2.12% ▼ Alexander Perry noted that Ford was considered an “OEM top pick,” thanks to the move away from electric vehicles and emissions mandates. And with Ford able to focus on building pickups and SUVs without need to consider emissions and mileage standards, that should free up Ford to make what money it can from the broader market.

Is Ford Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, 12 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 24.65% rally in its share price over the past year, the average F price target of $14.02 per share implies 15.58% upside potential.

Disclosure

Disclaimer & DisclosureReport an Issue