Ford overtook Tesla as the highest-gaining auto stock in 2021

According to foreign media reports, in 2021, Ford's stock price rose by about 140%, thus beating Tesla, GM and a large number of electric vehicle start-ups, becoming the highest-gained car stock last year.

F-150 Lightning (Image: Ford)

In October 2020, Jim Farley became CEO of Ford, and under his leadership the veteran car company began to explore new directions, a move that was appreciated by investors. Farley has previously promised that the company will become more open and direct when it comes to investors. In addition, he has launched a "Ford+" restructuring plan to devote more resources to electric vehicle manufacturing, such as the upcoming F-150 Lightning pickup truck.

In January 2021, he said in an interview: "We are executing on our own plans and we will continue to do so so that every business in the portfolio has a sustainable future." If a project is not sustainable, we will restructure it. ”

Morgan Stanley analyst Adam Jonas said 2021 was "a breakthrough year for Ford and the most important year for the company's strategy since the financial crisis."

On December 10 last year, Ford saw its biggest one-day gain when Farley confirmed on Twitter that it would triple production of The Muddy Mach-E electric vehicles in North America and Europe to more than 200,000 vehicles a year in 2030. The stock surged 9.6 percent on the day to $21.45 a share, a 20-year high. On October 28, Ford saw another day of stock price surges, when the company released its third-quarter earnings report, improved its annual guidance, and announced earnings per share that doubled analysts' expectations, after which its stock price rose 8.7%.

In the 15 months since Farley took office, Ford shares have risen more than 200 percent. Market watchers say that this rally will continue if the company can achieve its Ford+ plan and achieve an adjusted EBIT margin of 8% by 2023. Ford's current market capitalization is $83 billion, and it still has a long way to go if it wants to catch up with some other established car companies, or electric vehicle startups like Rivian, in terms of market capitalization.