The 118-year old Ford’s market cap reached over $100 billion the first time. The company’s shares skyrocketed to more than 5.7% on Thursday. The company’s stocks surged by reports of their plans to quicken the production of fully-electric models.
118-year old Ford reaches over $100 billion
Jim Farley, CEO of Ford, took over the company in October 2020. His Ford+ turnaround plan includes increased production. Reports of the company accelerating production of EV models pushed Ford Motor Company’s shares by 5.7%.
Jim Farley, Ford CEO, told Bloomberg, “I’m proud the company is getting recognized for our commitment to electrification. The market is saying we like this Ford move into battery-electric and we have more confidence in the delivery of the base business. We like that they’re moving now to scale while others are years away.”
However, Ford is suspending the reservations for the F-150 Lightning electric pickup. The vehicle has earned high demand, and Ford plans to quadruple the EV output to 150,000 units. The car will debut at the U.S. dealers this spring.
Nevertheless, The company aims to increase the Ford Mustang Mach-E crossover EV production at the Mexico factory.
Ford reaches over $100 billion, making it more valuable than cross-town rival General Motors and start-up rival Rivian Automotive.
Industry experts opinions on Ford’s market cap
Adam Jones, Analyst at Morgan Stanley, says, “The stock market’s attraction to the Ford EV story continues to take us by surprise.”
However, Wall Street’s confidence in Ford’s stocks lies in the ongoing operational turnaround. The solid third-quarter sales and CEO Farley and Executive Chairman Ford’s push toward greener vehicles have led to Wall Street’s confidence.
Jones also said, “The window of opportunity for the stock to enjoy a combination of a supportive cycle, strong ICE profitability (peak pricing and mix) as well as the promise and excitement of upcoming EV launches may continue through the first half of this year.”
What is next for Ford?
With Ford under the command of CEO Jim Farley, he has shifted Ford’s focus to electric and autonomous vehicles.
The company is building battery and assembly plants in Tennessee and Kentucky. With the help of these new plants, Farley has pledged to produce 600,00 EVs a year by 2024.
CEO Farley said, Investors “seems to like that we’ve come up with a way to execute the product in a way that it’s in high demand. Although I’m extremely thankful for the recognition of the team’s hard work, in my mind, we’re just getting started.”
Ford had cut its dividend in 2020 at the height of the pandemic was reinstated recently. The company also estimates a full-year adjusted profit of $10.5 billion to $11.5 billion.
Jonas claims since Ford has reached a $100 billion market cap; new factors are a part of the Ford stock.
Ford’s net sales of $33.2 billion beat analyst predictions by $800 million. With the global semiconductor shortage and restricted production levels, Ford has made history by reaching a $100 billion market cap.