Ford Motor Co. (F) - Get Report shares surged to the highest in more than two years Thursday after TheStreet's founder, Jim Cramer, highlighted the electric vehicle investment push from the new administration of President Joe Biden.
Cramer told CNBC's Mad Money program last night that Biden's clean-energy focus will accelerate changes in the auto industry that are already underway, a theme that was also highlighted by Deutsche Bank's Emmanuel Rosner, who boosted his price target on Ford by $2 to $11 per share, shortly after adding it to the bank's 'Conviction Buy' list ahead of the carmaker's fourth quarter earnings on February 3.
"Be ready for more stringent environmental regulations that push people into electronic vehicles .. and I'm increasingly drawn to Ford, because they're electrifying the F-150 and they have a nice investment in Rivian, the electric truck developer," Cramer said. "General Motors (GM) - Get Report works, too, and they're both cheap."
Ford shares were marked 6.6% higher in mid-day trading Thursday to change hands at $11.58 each, the highest in more than two years and a move that extends its six-month gain to around 75%. GM shares slipped a fresh ten-year high of $56.97 each to trade 0.64% lower at $55.52.
Democratic control of the Senate following run-off elections in Georgia have supported the broader electric vehicle sector, as did the appointment of former Michigan Governor Jennifer Granholm as Energy Secretary by President Biden late last year.
Biden has promised to build 550,000 electric vehicle charging stations while creating some 1 million new jobs through investment in clean energy research.
Granholm, who has close ties to the auto sector following her two terms as Governor, will need Senate confirmation to take up her post and work alongside Transportation Secretary appointee Pete Buttigieg.