You may not have noticed, but actually we are witnessing an “electric revolution” in the global automotive industry. This and much more was reported by Ford Motor Company executives at an online investor event. I can’t wait to share with you the details about the loud statements of the American automaker and the reaction of the stock market to the announced plans.
Ford made investors happy
On May 26, Ford Motor Company hosted Investor Day. At this online event, the management of the car company shared information on technical and financial advances, as well as announced forecasts and plans for the future.
The biggest announcements were made by Jim Farley, who took over as CEO in October 2020. He presented a global development plan called Ford +. There is an impressive restructuring and optimization of the business, and the conquest of new markets and segments – all as investors love, and we are with you.
Ford intends to take over the global electric car market
- The production of electric cars and the provision of subscription services are the main vector of development for the coming years. The company expects that by 2030 the share of electric car sales will reach 40% of the total volume.
- More than $ 30 billion will be invested in the development and production of electric vehicles by 2025.
- According to CFO John Lawler, a commercial unmanned vehicle will be launched by 2022.
- COO Lisa Drake announced the production of all-electric large trucks.
- Orders for a pickup truck powered by the F-150 Lightning rose from 44,500 to 70,000 in a week.
- In 2023, the production of electric cars will start on two new platforms: one for SUVs and crossovers, the second for smaller passenger cars.
- In April, the company announced that it would launch its own laboratory to develop lithium-ion and solid-state batteries for electric cars by 2022. She will receive a $ 185 million investment.
- In May, it announced the creation of BlueOvalSK, a joint venture with South Korean battery manufacturer SK Innovation.
Ford Motor Company Predictions
At Investor Day, not only statements about plans to get ahead of General Motors, Volkswagen and Tesla, but also forecasts for the coming years were announced. In 2023, the adjusted return on sales before interest and taxes is expected to be 8%. Recall that in 2019 it was 4.1%, in 2020 – 2.2%.
By 2025, the size of the revenue of the commercial business should reach $ 45 billion. For comparison: in 2019 it was in the region of $ 27 billion. This growth will be provided by the creation of a new direction for servicing and distributing cars for commercial and government customers.
Ford Shares Up 8.5%
On May 26, the price of shares of Ford Motor Company (NYSE: F) surged 8.5%, reaching $ 13.9. But the upward movement did not stop there, and the very next day the shares of the representative of the automotive industry showed an increase by another 7.05%, to $ 14.88. Over the past five years, this is a record figure.
Technical analysis of Ford shares by Maxim Artyomov
“Against the backdrop of the company’s growth prospects, its shares continue to rise in price. After a slowdown in the increase and correction, the quotes made a significant increase and broke the upper boundary of the ascending channel. At the same time, the price is still above the 200-day moving average, which indicates the continuation of the upward trend.
Considering that the quotes rose, we can assume that further correction will follow. The reference point for the rollback is the $ 13.5 mark. In the future, with positive news and positive financial reports, the quotes have every chance to grow to the $ 17 mark.
Summing up the result
At an investor event, the management of the automobile giant Ford announced that it intends not only to impose a worthy struggle on its competitors in the global electric car market, but to seize it.
For this, $ 30 billion will be invested in the production of batteries and electric cars by 2025. The investments will go to the production of two new platforms for electric cars, as well as the creation of our own laboratory for the development of lithium-ion and solid-state batteries. Let’s not forget about the joint venture with SK Innovation.
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