Ford Motor Co (F) shares climbed Friday afternoon, riding a fortunate convergence of good news: a supply chain scare that turned out to be manageable, and fresh hopes that the Federal Reserve might actually cut rates next month.
What Happened: The rally kicked off after Ford filed an 8-K addressing a fire Thursday at the Novelis aluminum plant in Oswego, a critical supplier for the automaker. Investors initially worried about potential production disruptions, but the filing quickly calmed those fears.
The fire was contained without injuries, and the essential cold mill and heat treatment operations at the facility have already resumed. More importantly, the Dearborn-based automaker explicitly reaffirmed its full-year 2025 adjusted EBIT guidance of $6 billion to $6.5 billion and adjusted free cash flow of $2 billion to $3 billion.
By tapping into Novelis's global network to manage any shipment delays, Ford signaled it could absorb this supply chain hiccup without meaningful financial damage. That's exactly what investors wanted to hear.
The Fed Factor: At the same time, the capital-intensive automaker caught a second tailwind from shifting monetary policy expectations. Following dovish comments from Federal Reserve officials John Williams and Stephen Miran, who stated he would "absolutely vote" for a cut, the odds of a December 10 rate reduction jumped to 74%.
For Ford, lower interest rates matter enormously. They effectively reduce the cost of vehicle financing for consumers, which can boost demand and make those monthly payments more palatable. The combination of intact financial guidance and the prospect of cheaper borrowing powered the stock's Friday afternoon climb.
Value Play: Adding to the bullish case, analytics assign Ford a dominant value score of 81.79, indicating the stock remains fundamentally attractive even as it rallies. That suggests there might be room to run beyond Friday's gains.
Price Action: Ford Motor shares were up 4.03% at $12.91 at the time of publication on Friday, according to market data.
How To Buy Ford Stock
If you're interested in participating in the market for Ford Motor, whether buying shares or taking a bearish position, here's what you need to know.
Buying shares is typically done through a brokerage account. Many platforms now allow you to buy "fractional shares," which lets you own portions of stock without purchasing an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" by lending you shares to sell. Otherwise, if your broker allows options trading, you can either buy a put option or sell a call option at a strike price above where shares are currently trading, both of which allow you to profit from a share price decline.