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Shares of Ford Motor Co (NYSE: F) lost 3.0% today even though the automaker said its U.S. vehicle sales went up 9.9% year-on-year in the second quarter.

Mustang Mach-E sales climbed 110% in June

The multinational sold 531,662 vehicles in total, including 4,466 units of the F-150 Lightning. Sales of its F-Series trucks overall climbed 34% versus a year ago.

On the flip side, though, EV sales sunk 2.8% in Q2 to 14,843 units as it revamped a facility that produces the Mach-E to boost capacity for the future. In the quarterly update, the management confirmed:

Improved Mustang Mach-E inventory flow began to hit at the end of Q2 following the retooling of our plant earlier this year, which helped Mustang Mach-E sales climb 110% in June.

Ford Motor is committed to turning its electric vehicles segment profitable by the end of 2026.

Wells Fargo says sell Ford stock before it’s too late

Also on Thursday, Wells Fargo analyst Colin Langan recommended pulling out of Ford stock now that it’s gained over 30% since mid-May. He sees several headwinds for the automaker ahead, including uncertainty related to upcoming negotiations with the United Auto Workers.

We expect a contentious negotiation given new UAW leadership and high wage expectation. A 10% wage increase in our base case, which implies about $850 million in incremental costs.

Higher rates, inflation, and a reluctant consumer could weigh on sales as well, the analyst added. His $10 price objective suggests Ford Motor could tank more than 30% from here.

Ford is scheduled to report its second-quarter financial results on July 27^th. A day earlier, rival General Motors also disclosed a sequential decline in its EV sales in Q2.

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