Ford Set to Outpace GM With Tariff Tailwinds and EPS Momentum

Key Points

• Ford stock has positioned itself in the automotive industry to outperform peers and outpace current trade tariff tailwinds, creating an opportunity for buyers.
• Recent EPS outperformance sets the stage for the future ceiling of the stock price, backed by a new pivot.
• Investment in technology and efficiency will justify Ford's decision to head to higher prices.

Shares of Ford Motor Co. NYSE: F are now trading at 97% of their 52-week highs and carry enough momentum to increase the chances of it breaking into new highs well before 2025 is over.

The reason behind the rise is apparent, but the question for investors remains: is the rally sustainable? The answer is yes, and the reasoning lies in both Ford’s operational foresight and the shifting trade environment for automakers.

Ford’s Position in the Tariff Era

While trade tariffs are reshaping the automotive sector, investors are often confused about how domestic vehicle makers like Ford could be impacted.

They will be affected, that's for sure. But Ford is in a much better position than most of its peers due to management decisions implemented early, which will not only safeguard profitability but also open new growth opportunities. 

Why Ford Outshines GM

Comparing Ford with its competitor General Motors Co. NYSE: GM offers clearer insight.

In its Q2 earnings report, General Motors posted a net $2.53 in EPS compared to the MarketBeat consensus of $2.52, a marginable beat which fundamentally should turn very few heads toward the stock.

On the other hand, Ford reported 37 cents in its latest quarterly earnings release. Compared to the MarketBeat consensus of 33 cents, this 12% beat is undoubtedly enough to garner attention to this story and determine whether it is sufficient to propel Ford stock toward higher prices in the future.

Markets have responded accordingly: Ford trades at a forward P/E ratio of 7.9x, a premium over GM’s 5.1x.

Value investors might hesitate at Ford’s higher multiple, but it's important to remember that markets often reward companies they believe can deliver sustained growth.

The real question is whether Ford has the capacity to justify its premium.

Management Made the Right Move

Seeing that new automotive tariffs have become favorable for domestic auto makers, Ford’s leadership took a proactive stance on tariffs with a $5 billion investment into a new "assembly tree" strategy that refocuses manufacturing on U.S. soil while integrating new technologies.

The bearish camp argues that tariffs will force companies to relocate their manufacturing to the United States, which will spike costs and compress margins.

But the bulls see Ford’s strategy as a way to boost efficiency enough to offset cost pressures, while also qualifying its vehicles for tax cut incentives available to domestically built cars. That combination not only protects margins but also makes Ford’s vehicles more affordable, driving demand and supporting future EPS growth.

Institutional Support Signals Confidence

As you probably know, institutional confidence often validates a stock’s long-term outlook, especially when paired with a fundamental catalyst like Ford’s onshoring strategy. 

So when the Canada Pension Plan Investment Board increased its Ford holdings by 9.4% in August 2025 (bringing its total investment to $78.5 million), the bullish thesis gained further weight.  

At the same time, short interest in Ford stock dropped by 4.2% in the past month. This signals potential bearish capitulation, as short sellers concede that the stock’s setup increasingly favors long-term buyers.

Outlook for Ford Stock

With EPS momentum, tariff-driven advantages, and institutional backing, Ford is positioned to maintain its market premium and potentially break into new highs. Investors should watch how Ford executes on its assembly strategy, but the pieces are in place for the company to outpace General Motors and strengthen its foothold in the U.S. automotive market.