Beating Tesla, the most bullish auto stock in 2021 is this car company

Last year, the stock price of the veteran car giant Ford rose by 137.48%, beating tesla, General Motors, Rivian and other car companies to win the crown of the top of the automaker's stock price performance list in 2021.

Since auto veteran Jim Farley took the helm in October 2020, Ford's stock price has risen cumulatively by 228.37% (as of January 3). In his 15 months as CEO of the established automaker, Farley undertook radical reforms and, step by step, gained investor acceptance.

In an interview with CNBC in January 2021, Farley said:

"Every business in our portfolio has sustainable prospects. If not, we will restructure it. ”

Since taking office, Farley has promised to be more transparent with investors, releasing U.S. sales data to investors every month. On October 28, 2021, Farley told analysts:

"I promise to be transparent with each of you, with numerous key performance indicators (regularly disclosed) so that you can objectively track our progress."

Subsequently, Farley also boldly launched the "Ford +" restructuring plan, which changed the management team of the old car factory and recruited new executives from Apple and other companies. At the same time, he poured more resources into the development and manufacturing of electric vehicles, such as the upcoming F-150 Lightning electric pickup.

Late in September, Ford and battery supplier SK Innovation said they planned to invest $11.4 billion in U.S. manufacturing electric vehicles and battery factories. In an interview with CNBC last November, Farley commented on his "electrification" transformational reform initiatives:

"There is growing confidence that Ford will be one of the winners of the industry's new digital transformation, and we have a lot of incredible advantages."

Under Farley's series of drastic measures, Ford, which has improved its profitability, has gained more and more attention and favor from investors. Morgan Stanley analyst Adam Jonas said:

"This is indeed a breakthrough year for Ford, probably the company's most strategically important year since the financial crisis."

At the same time, according to CNBC, some analysts in the market pointed out that if Ford successfully implements its "Ford +" plan and can maintain an EBIT ratio of 8% until 2023, then the growth momentum will continue.

It is worth mentioning that although Ford's stock price has risen sharply since Farley took the helm, the current market value is still less than $87 billion, which is not even as good as the electric pickup truck rookie Rivian (92.481 billion), not to mention Volkswagen, Tesla, Toyota and other established competitors. Ford is still a long way from a true renaissance.

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