8 Most Undervalued EV Stocks to Buy According to Hedge Funds

3. Ford Motor Co. (NYSE:F)

Forward P/E Ratio as of March 7: 7.63

Number of Hedge Fund Holders: 45

Ford Motor Co. (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles worldwide. It is transitioning towards EVs. Operating through segments like Ford Model e, the company develops, delivers, and services both EVs and its signature trucks, and other traditional vehicles.

The company’s Model e division is in a phase of heavy investment despite facing market headwinds. In 2024, the division achieved $1.4 billion in cost reductions, even with an extra $100 million spent on new battery plants and next-gen EV development. However, revenue declined by 35% year-over-year due to industry-wide pricing pressures. For 2025, Ford Motor Co. (NYSE:F) anticipates Model e losses of $5 billion to $5.5 billion. This is attributed to continued pricing challenges and investments in battery facilities and new EV models launching in two years.

Ford Motor Co. (NYSE:F) is increasing global EV volume, particularly through European launches. The BOSK battery joint venture, which is a partnership for producing batteries later in 2025, is expected to generate cost savings via production tax credits. The company performed 9 million over-the-air updates in Q4 2024, with 80% addressing customer and warranty issues. It’s also implementing design improvements and enhancing software development to reduce EV costs.