Shares of automaker Ford Motor Company (NYSE: F) were green on Tuesday after Bloomberg reported that the company is likely to accelerate investments by $10 billion to $20 billion on vehicle electrification. Additionally, the company might partially spin off the EV business as part of its reorganization plan.
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Ford’s chief communications officer, Mark Truby, said, “We are executing our Ford Plus plan to transform the company and thrive in this new era of electric and connected vehicles. We would not comment on speculation.”
Plan in Detail
It is expected that incremental investments will be spread over the next five to ten years, which would include conversion of factories into electric-vehicle production from gasoline-powered car production. Remarkably, these investments would be over and above the company’s recent commitment of around $30 billion in investments in electric vehicles through 2025.
According to the source, Ford might hire an unspecified number of specialized engineers in fields like battery chemistry, artificial intelligence, and EV software.
Ford Motor is a global automobile company and is the third-largest car manufacturer in the United States. The company is engaged in designing, manufacturing, and selling cars, trucks, and automobile parts. Investors are optimistic about the company’s growth plans and CEO Jim Farley’s aggressive electrification strategy. Shares of the company have skyrocketed over the past year, with gains of 145%.
Wall Street’s Take
Recently, RBC Capital analyst Joseph Spak maintained a Hold rating and a price target of $26 (25.85% downside potential) on Ford.
Overall, the stock has a Hold consensus rating based on 7 Buys, 7 Holds, and 2 Sells. The average Ford price target of $24.00 implies 16.2% upside potential.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Ford’s performance this quarter.
According to the tool, the Ford website recorded a 1.62% increase in global visits in December compared to the same period last year. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, came in at 10.7%.
Additionally, a website traffic uptrend is visible. In Q4 2021, there was approximately a 3% increase in total estimated visits on the Ford website, on a global basis. This, in turn, indicates the company might have recorded strong revenues in the to-be-reported quarter. Ford’s earnings will be released on February 3rd.
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