Ford Motor (F) - Get Ford Motor Company Report shares hit the highest levels in five years Wednesday after the carmaker dramatically increased its clean energy vehicle investment plans by $8 billion and vowed to have 40% of its fleet fully electric within the next decade.
Ahead of investor day event in Detroit, the first under CEO Jim Farley, Ford said it will up its investment in EVs to at least $30 billion by 2025, and will create a new division called "Ford Pro" that will focus on commercial vehicles and government customers. Ford also said it would deliver an 8% adjusted profit margin -- a long held goal for the carmaker -- by 2023.
“I’m excited about what Ford+ means for our customers, who will get new and better experiences by pairing our iconic, world-class vehicles with connected technology that constantly gets better over time,” Farely said. “We will deliver lower costs, stronger loyalty and greater returns across all our customers.
“This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T, and we’re grabbing it with both hands,” Farley added
Ford shares were marked 8.3% higher in late-morning trading Wednesday to change hands at $13.86 each. The stock traded as high as $13.95 earlier in the session, the highest in more than five years.
Earlier this week, Ford unveiled a commercial version of its popular all-electric F-150 Lightning truck, the F-150 Lightning Pro, with a base price of just under $40,000, a figure that pegs it largely in-line with Tesla's TSLA planned cybertruck.
Last week, Ford unveiled the mainstream version of its electrified F-150, the top-selling car in the United States, during a visit to a production facility in Dearbon, Michigan from President Joe Biden.
Ford cautioned last month that the ongoing shortage in global semiconductors would cost it around $2.5 billion -- more than double its previous estimate -- and likely last until at least the first half of 2022 after its smashed first quarter earnings forecasts with a bottom line of $3.3 billion, the best in a decade, on revenues of $36.2 billion.