The most bullish auto stocks of 2021 shine again: Ford's market value exceeded the $100 billion mark for the first time

Financial Associated Press (Shanghai, editor Huang Junzhi) news, january 13 (Local time on Thursday), Ford Motor's market value exceeded $100 billion for the first time, as the automaker's stock price hit a new high in 52 weeks in early trading, once rising more than 5%. However, the day's closing finally fell back to $25.02, the increase narrowed to 2.3%, and its market value fell to $99.99 billion.

Ford's plans to ramp up electric vehicle production, including the Mustang Mach-E, and the electric version of the best-selling F-150 pickup that will launch this spring, have propelled the company's stock price higher. These efforts are part of a "Ford+" transformation initiative led by CEO Jim Farley.

On Tuesday, Ford announced nearly doubling annual production of all-electric F-150 Lightning pickups to 150,000 units, but said reservations had exceeded 200,000. In addition, due to better-than-expected market demand, the company plans to triple the annual production of the Mustang Mach-E pure electric SUV to more than 200,000 units by 2023.

Ford's current market capitalization has surpassed rival General Motors, which is about $90 billion in market capitalization, while also surpassing electric vehicle startup Rivian Automotive, which has a market capitalization of $72 billion. Rivian Automotive conducted a sensational IPO last November, but failed to maintain its growth momentum. Still, Ford is far behind Tesla, which has a market capitalization of more than $1 trillion.

Farley had publicly promised a month ago that he had ambitions to eventually surpass Tesla in U.S. eviction sales, but first hoped to surpass GM, which would boost production to 600,000 electric vehicles within two years.

Over the past year or so, Farley has boldly embarked on a "Ford Plus" restructuring, overhauling the management team of the established automaker and poaching new executives from Apple and other companies. At the same time, he poured more resources into the research and development of electric vehicles, and plans to invest $11.4 billion in electric vehicles and battery factories in the United States.

Based on the average rating of 22 analysts compiled by FactSet, Ford Motor was rated as overweight with a target share price of $21.83. But not all Wall Street analysts are entirely confident that Ford can continue its current momentum. Last year, Ford's stock price soared by 137.48%, beating Tesla, General Motors, Rivian and other car companies topped the list of automakers' stock price performance in 2021.

Morgan Stanley analyst Adam Jonas on Thursday in a report titled "What's in the Ford Market Cap Above $100 Billion Price?" The Ford market Cap cross $100 billion: What's in The Price?' report told investors: "The appeal of the Ford EV story to the stock market continues to surprise us."

The target price of Damo for Ford is only $12. Jonas noted that the cyclical return of the auto industry, the challenges of expanding EV production, and the entry of more competitive and attractive EVs into the market to compete with Ford are all cause for concern.

"Ford's stock price movements are impressive, and management's change in strategic narrative, triggering a re-rating, is commendable," Jonas said. "However, at this critical juncture, we believe the risks facing Ford and the industry as a whole are growing faster than the opportunities."