Ford Motor Company’s commitment to electric vehicles has pushed its market value above $100 billion for the first time.
Ford shares rose 2.2 percent to $25.02 on Thursday in New York, closing just under $100 billion at the end of the day. While the 118-year-old automaker’s market cap exceeds rival General Motors ($88.61 billion) and EV startup Rivian Automotive ($77.8 billion), it is still far from Tesla, which is valued by investors at more than $1 trillion.
Ford’s prospects in the electric age look good as the carmaker is doubling planned production of the electric F-150 Lightning pickup truck to 150,000 vehicles while also increasing Mustang Mach-E production at its plant in Cuautitlan, Mexico.
Demand for the F-150 Lightning vastly exceeds supply and Ford had to stop taking reservations for the truck ahead of its arrival this spring at US dealers.
Gallery: Ford F-150 Lightning Pro
“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.”
Ford CEO Jim Farley cited by Bloomberg
Ford shares have been rising spectacularly since Farley became CEO 15 months ago, after falling to a 10-year low under his predecessor Jim Hackett. Ford’s current boss accelerated the company’s shift to electric and autonomous vehicles, pledging that Ford will build 600,000 EVs a year by 2024 as part of a broader strategy to invest more than $30 billion on EVs by 2030.
Farley also announced massive production investments in battery and assembly plants in Tennessee and Kentucky recently.
The CEO believes investors “seem to like that we’ve come up with a way to execute the product in a way that it’s in high demand.” While that sounds great, Farley says Ford is just getting started.