Ford Motor CompanyF is recalling 148,663 Mustang vehicles over an electrical wiring issue that could result in a loss of drive power or disrupt key functions, including the headlights, thereby raising the risk of a crash.

Per the National Highway Traffic Safety Administration (NHTSA), certain Mustang vehicles may have an electrical wiring defect that could cause a loss of propulsion or affect the windshield washer system, headlights, air conditioning or engine cooling fan.

The recall covers 2024-2026 Ford Mustang vehicles manufactured between Sept. 7, 2022, and June 9, 2026. NHTSA estimates that approximately 1% of the recalled vehicles may have the defect.

Ford is expected to notify affected owners by mail between Aug. 31 and Sept. 4, 2026. A follow-up notification will be sent once a remedy becomes available, which is currently expected around March 2027.

Owners can take their affected vehicles to a Ford or Lincoln dealership, where the engine compartment wiring harness ground terminals will be replaced at no cost. F carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Latest Updates on Recalls by Other Automakers

Tesla, Inc.TSLA is facing heightened regulatory scrutiny in China after regulators ordered the recall of about 2.98 million vehicles last month over concerns that emergency door-release systems could fail during a crash or power loss. The recall primarily affects Tesla's China-made and imported Model 3, Model Y, Model S and Model X vehicles. The issue highlights safety concerns surrounding Tesla's electrically operated, flush-fitting door handles, a design feature closely associated with the company's modern EVs. 

General Motors CompanyGM is facing an expanded U.S. safety investigation into engine failures affecting nearly 1 million pickup trucks and SUVs. GM previously recalled nearly 600,000 vehicles from the 2021-2024 model years over L87 engine problems linked to supplier quality issues. However, the issue has persisted despite recall repairs, with GM receiving nearly 7,000 complaints involving post-recall engine failures, while NHTSA has received 499 complaints.

F's Price Performance, Valuation and Estimates  

Ford has outperformed the Zacks Automotive-Domestic industry in the last six months. Its shares have gained 10.4% against the industry's decline of 7.8%. 

Image Source: Zacks Investment Research

From a valuation perspective, F appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.32, lower than the industry's 3.24.