According to foreign media reports, on January 13, Eastern Time, Ford Motor Company's market value exceeded $100 billion for the first time, as more and more investors bet on the Detroit automaker's electrification strategy.
On the same day, Ford Motor Company shares rose 5.7% to $25.87, a new high in more than 20 years, and finally closed at $25.02, up 2.3% year-on-year.
(Image source: Reuters)
At present, Ford's market capitalization has surpassed its century-old rival General Motors and the new electric vehicle powerhouse Rivian, the latter two currently have market capitalizations of about $88.61 billion and $77.8 billion, respectively. Still, these automakers pale in comparison to Tesla, a leader in the electric car industry, which has a market capitalization of more than $1 trillion.
Ford's stock price growth was driven by plans to increase production of electric vehicles, including the Mustang Mach-E crossover and the upcoming F-150 electric pickup, an effort that was part of a Ford+ transformation plan led by Ford CEO Jim Farley. Farley, who took over as CEO of Ford in October 2020, pledged that by 2030 Ford would invest more than $30 billion in electric vehicles, which include battery development.
Mustang Mach-E (Image: Ford)
Ford's electric vehicle strategy boosted performance among Wall Street brokers, the latest to raise Ford's target share price. Emmanuel Rosner, an analyst at the bank, raised its target share price for Ford to $24 from $18 and said, "We believe Ford's fourth-quarter results are expected to exceed general market expectations as its continued strong automotive pricing offsets growing headwinds in the raw materials market." ”
The current average Wall Street price target for Ford is $21.85.