Ford Motor Company (F) shares plummeted 5.05% in intraday trading on Thursday, as investors reacted to a downgrade from Goldman Sachs and growing concerns about the impact of tariffs on the automotive industry. The stock's sharp decline came amid a broader market selloff, with major indexes falling as traders reassessed the risks posed by escalating trade tensions between the United States and China.

Goldman Sachs downgraded Ford to Neutral from Buy, citing increased international competition, weaker consumer demand, and expected higher tariff costs. The investment bank lowered its price target on Ford to $9 from $11, noting that Wall Street's earnings estimates for the company in 2025 have been revised downward by 32% since Goldman upgraded the stock to Buy in September. UBS also adjusted its price target on Ford to $9 from $10, while maintaining a Neutral rating.

The automotive sector faced additional pressure as President Donald Trump's recent move to pause and lower reciprocal tariffs for 90 days did not apply to the existing 25% import duties on new vehicles and car parts. This development has led analysts to predict significant cost increases for automakers, with Goldman Sachs estimating that vehicle prices in the U.S. could rise by $2,000 to $4,000 over the next 6-12 months. The bank also cut its forecast for U.S. auto sales in 2025 by nearly 1 million units to 15.40 million, citing the impact of tariffs on both manufacturing costs and consumer demand. As Ford and other automakers grapple with these challenges, investors remain cautious about the sector's near-term prospects in an increasingly uncertain global trade environment.