Ford Among Most Active Stocks After EV Investment Boost - Kalkine Media

June 07, 2021 09:59 AM PDT | By Team Kalkine Media
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Summary

  • Shares of Ford Motor Corp. (F) are among the most active stocks of late after it announced plans to boost investments in EVs to US$30 billion by 2025.
  • The American auto giant also said that 40% of its vehicles will be EVs by 2030.
  • Ford also plans to launch its E-Transit commercial cargo van later this year.

The shares of American auto giant Ford Motor Company (F) have been among the most active stocks in the stock market these days.

Its 10-day, 30-day, and 50-day average trading volume had been about 157 million, 97 million, and 79 million, respectively.

On May 26, the Michigan-headquartered company had announced plans to invest more than US$30 billion in its Electric Vehicle (EVs) division, which include developing infrastructure and components by 2025.

Ford said it would manufacture its own IonBoost batteries for the cars, projected to grow to around 40% of its total vehicle stock by 2030.

The company has already begun investing in zero-emissions vehicles. In February this year, it had raised its investment to US$22 billion in the EV segment before announcing another US$8 billion in May.

Ford will manufacture the batteries in collaboration with South Korea’s SK Innovation, a leading EV battery maker in Asia.

On the day of its announcement, the stock had surged more than 6%. The stock was trading down at 1.56% to US$15.72 from the previous close on June 7. Ford shares gained more than 84% YTD.

Ford’s market cap is around US$54 billion. The automaker expects its revenues to increase to US$45 billion by 2025 from US$27 billion in 2019.



Source: Pixabay.

Also Read: Toyota's next-gen Highlander all set to conquer Kiwi roads

What EV Brands Ford Co Own?

Ford’s latest model is the electric version of its best-selling F-150 truck called Lightening. The company claims to have received 70,000 orders for F-150.

The vehicle is expected to hit the showrooms in 2022.

Ford will launch an E-Transit commercial cargo van later this year. The all-electric cargo vehicle is aimed at reducing vehicular pollution in the US.

The company also had launched a battery-powered SUV, Mustang Mach-E, in 2020. The Mach-E constitutes 70% of all Ford car buyers currently.

Ford electric vehicle sales surged 262% in April 2021 compared to the figures in the previous month. In addition, with the development of new battery technologies, EV prices are expected to fall in the near future.

According to an industry estimate, EV battery prices are likely to decline by 40% by the middle of this decade. Ford CEO Jim Farley said more and more customers choose EVs over gasoline cars these days due to climate concerns.

Also Read: 2 EV Stocks To Explore: Nio, Xpeng

Why Are Automakers Opting for EVs?

Ford’s main rival, General Motors Co. (GM), also have announced plans to stop making diesel-powered based vehicles by 2035.

German automaker Volkswagen targets 26 million EV sale in the next 10 years.
Furthermore, Tesla plans to ramp up the production of EVs over the next few months. Auto majors across the globe are shifting to EV production as part of international efforts to reduce carbon emissions over the next two decades.


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