- Ford climbed to 9% on Wednesday after revealing plans to increase its investment in electric vehicles to $ 30 billion by 2025.
- The automaker also said it expects electric vehicles to account for 40% of its global sales by 2030.
- The announcements were made on Ford’s Investor Day, its first under the leadership of CEO Jim Farley.
Actions of Ford engine climbed to 9% on Wednesday after the automaker revealed plans to strengthen its investment in electric vehicles to more than 30 billion dollars by 2025, up from its previous target of $ 22 billion.
The company also said it expects electric vehicles to account for 40% of its global sales by 2030.
The series of announcements were made at Ford’s Investor Day conference on Wednesday, the first under CEO Jim Farley who took office in October 2020. Farley came to Ford in 2007 after a career at Toyota. “While stocks and the EV space are clearly going through a period of painful digestion, we see this as a short-term pullback in a multi-year bullish rally,” Wedbush analyst Dan Ives said in a note Wednesday.
He added: “We expect the electric vehicle market to be worth $ 5,000 billion. [total addressable market] Over the next decade, many original equipment manufacturers / electric vehicle supply chain players are expected to be the main winners over the next few years in this green tidal wave. “
The rationale for the new plan dubbed “Ford +” is for investors to shift their perspective of the business from an automaker to a technology company.
The company targeted by the plan aims to achieve an operating margin of 8% by 2023.
Ford is joining with other automakers around the world to transition from gasoline-powered vehicles to electric vehicles in an effort to promote a greener environment and compete with major electric vehicle manufacturers such as You’re here and Volkswagen.General Motors in January 2021, it was announced end all sales of gasoline vehicles by 2035.
Ford has racked up 70,000 reservations so far for its F-150 Lightning, a fully electric version of its iconic pickup that was unveiled a week ago.
-Jim Farley (@ jimfarley98) May 21, 2021
“As more companies commit to becoming carbon neutral, they will expect electrical products that can easily fit into their operations,” Jim Farley, President and CEO Ford management, said in a press release in May. “Ford is so well positioned to answer that call, because we have a zero emission pickup truck and van, a lot of our customers want both vehicles in their fleet.”
-Jen Psaki (@PressSec) May 18, 2021
US President Joe Biden last week tested Ford’s F-150 electric prototype himself during a visit to the Ford factory to praise the federal investment in electric vehicles.
The president has committed $ 174 billion to boost EV production as part of its massive $ 2 trillion infrastructure plan.