Ford Motor Company ( F ) shares are trading higher Tuesday after the automaker released its May 2025 U.S. sales data showing broad strength across its combustion and hybrid segments.

What To know: Total vehicle sales rose 16.3% year-over-year to 220,959 units, with internal combustion models making up the bulk of the gain at 191,517 vehicles, up 17.2% from a year ago. Hybrid sales also continued to grow, climbing 28.9% to 22,719 units, bringing Ford's year-to-date hybrid total to over 97,000 vehicles. In contrast, fully electric vehicle sales dropped 25% year-over-year to 6,723 units, and deliveries of the F-150 Lightning specifically fell over 40% compared to the same month last year.

The sales report underscores the uneven performance across Ford's vehicle portfolio. While demand for traditional and hybrid vehicles remains strong, electric vehicle sales continue to struggle amid broader consumer hesitancy and price competition in the EV market. Notably, Ford's best-selling trucks and SUVs, including the F-Series, Bronco and Explorer, contributed significantly to volume growth. SUV sales were up 25% year-over-year, and trucks rose over 11%, while car sales declined slightly.

At the same time, Ford is managing the fallout from several recalls. Most recently, the company announced it would recall over 29,500 F-150 Lightning pickup trucks due to a suspension defect that could cause the upper control arm to separate from the knuckle assembly, raising crash risks. The issue affects model years 2024 and 2025 and comes shortly after another major recall involving 1.1 million vehicles over faulty rearview cameras.

In addition to product issues, Ford is navigating political uncertainty around electric vehicle policy. Executive Chair Bill Ford warned that GOP-led efforts to eliminate the $7,500 EV tax credit as part of a broader tax reform package could undercut the company's EV battery production plans in Michigan. The policy shift could alter the financial viability of large-scale EV manufacturing projects, particularly as the company expands battery production capacity in Kentucky and elsewhere.

F Price Action: Ford shares were up 1.80% at $10.17 at the time of writing, according to Benzinga pro.

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