Ford Motor (F) - Get 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 the investor day event in Detroit, the first under CEO Jim Farley, Ford said it will up its investment and spending 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.
“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 said.
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Ford shares rose 8.5% to close Wednesday at $13.90, and added another 1.8% in after-hours trade. The stock traded as high as $13.95 earlier in the session, the highest in more than five years.
The carmaker 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.
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.
Despite the hit from COVID-19, the automakers soared into 2021. Specifically with Ford, shares kept on rallying until topping out on March 15. This is notable because even as Tesla (TSLA) - Get Report, NIO (NIO,) - Get Report and other EV and growth stocks were under intense selling pressure, Ford was continuing to drive higher.
Here is a list of the electric vehicle stocks to watch:
“Instead, these will be the first Tesla vehicles to rely on camera vision and neural net processing to deliver Autopilot, Full-Self Driving, and certain active safety features,” Tesla wrote. During the transition, cars with Tesla Vision may have some features temporarily limited or inactive, including Autosteer, Smart Summon, and Emergency Lane Departure Avoidance, the company added.
Tesla recently traded at $607.91, up 0.53%. Tesla shares have slumped 17% in the last month amid valuation concerns.
TheStreet Quant Ratings rates Tesla as a Hold with a rating score of C.
Ford Motor (F) - Get Report shares on Tuesday wavered after the auto titan received positive commentary from RBC Capital Markets in a preview of Ford’s investor day presentations on Wednesday.
On Monday, 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.
"I think that plenty of people will want to get one because they’re environmentally friendly, they have a lot of space for cargo, and they have a 200-300 mile range. That may not be enough for small to medium-sized businesses, but I think the F-150 Lightning will have a whole new set of buyers -- buyers who always thought they would want a pickup, but could never pull the trigger. I think they will pull the trigger now because it’s EV,” TheStreet's Jim Cramer said.
TheStreet Quant Ratings rates Ford as a Hold with a rating score of C.
Lockheed Martin (LMT) - Get Report unveiled a partnership with General Motors (GM) - Get Report in which the defense and auto giants will work with NASA to develop a new design for lunar-transport vehicles.
The pair will develop the next generation of vehicles designed to transport astronauts across the surface of the moon in an "unprecedented fashion." The company statement called GM a leader in battery-electric technology and propulsion systems and mentioned the company's autonomous technology.
Shares of General Motors were rising 0.9% this past week after Japan's Toyota Motor Co. (TM) - Get Report hit a record high in Tokyo trading amid optimism that traditional automakers can weather the global semiconductor shortage. General Motors posted stronger-than-expected first-quarter earnings.
TheStreet Quant Ratings rates GM as a Buy with a rating score of B.
Nikola (NKLA) - Get Report was moving into high gear this past week after the electric truck maker posted better-than-expected first-quarter results. The company said that during the first quarter, it commissioned the first batch of five Nikola Tre battery-electric vehicles.
Last month, Nikola unveiled plans with Iveco and OGE to transport hydrogen from production sources to fueling stations that support fuel-cell elective vehicles. And this past week the company said Total Transportation Services, one of Southern California's most prominent port trucking companies, signed a letter of intent to order 100 Class 8 battery and fuel-cell electric semi-trucks.
While the stock is off its lows, it’s still down almost 50% from its highs in January. Despite a solid earnings report in April and plans for expanding into Europe, NIO just can’t seem to find its groove.
However, NIO rallied almost 5,000% from its October 2019 low to its high in January 2021. So it’s not surprising to see a ~50% correction off the highs.
TheStreet Quant Ratings rates NIO as a Sell with a rating score of E+.
The decline came after the company reported its quarterly results, which reiterates the risk of some of these newer companies. The electric vehicle company lost 72 cents a share, more than double what analysts were expecting. There was no revenue in the quarter, which underscores why the stock is down more than 80% from its February high.
Lordstown posted a wider-than-expected first-quarter loss and said 2021 production of its Endurance truck will be half prior expectations due to a production cut.
Fisker (FSR) - Get Report said this past week that it plans to develop the first all-electric vehicle for Pope Francis, part of the electric carmaker’s vision of teaming up with leaders it sees as considerate of the environment.
In a private audience with Pope Francis, Fisker founder and CEO Henrik Fisker and Geeta Gupta-Fisker presented their vision for the design of an all-electric papal transport.
The company plans to deliver this singular version of the Fisker Ocean to the Pope next year. The Fisker Ocean is projected to start production on Nov. 17, 2022. There are currently more than 16,000 reservation holders for the Ocean.
Xpeng shares rose this past week after the Chinese electric vehicle maker reported stronger-than-expected first-quarter results, including a sevenfold surge in revenue. Xpeng shares recently traded at $26.10, up 5.4%. They have dropped 47% over the past three months amid investor concern about the stock's valuation.
Xpeng debuted the Xpeng P5 smart sedan earlier this month, which the Chinese electrical vehicle maker said is the world’s first mass-produced smart EV equipped with automotive-grade LiDAR technology. LiDAR, or light detection and ranging, is a system that helps provide visibility for autonomous vehicles.
Plug Power (PLUG) - Get Report jumped this past week after the fuel-cell maker said it completed the restatement of its financial statements for the past three years. The company said the restatements had no effect on its cash position, business operations, or economics of its commercial arrangements.
"For those who like hydrogen, the stock to like is Plug Power," Cramer said in an interview. "The company has been getting breakout orders, which I like. But at the same time hydrogen is at 60 bucks; it needs to be competitive with oil.
TheStreet Quant Ratings rates Plug Power as a Sell with a rating score of D.
The San Jose, Calif., company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.
"That's dead money. I'm sorry," Cramer said of Canoo this past week during the "Mad Money Lightning Round."
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