Why Kevin O'Leary Is Adding To His Ford Stock Position

Ford Motor Co F is trading above $20 per share this week for the first time in 20 years.

Kevin O'Leary, chairman of O'Shares ETFs, added to his Ford stock position despite the stock having rallied more than 125% year-to-date.

Ford CEO Jim Farley is finally focused on "executional excellence," O'Leary said Tuesday on CNBC's "Fast Money Halftime Report."

What Happened: "Mr. Wonderful" tried to order a new F-150 in July, but it was delivered below acceptable standards.

"It got delivered missing chips. As far as I was concerned it was uninsurable," according to O'Leary.

O'Leary then called out Farley on CNBC for the company's lack of execution. Following the incident, Ford delivered O'Leary an impeccable F-150 in September.

O'Leary then announced he bought one-third of a full position in the stock and said if Farley continues to deliver, he will buy more.

"My thesis is this: the demand is insatiable for this brand. All they have to do is execute, so it's back on Farley. I'll buy more stock if he can start delivering."

Related Link: 'Mr. Wonderful' Buys Ford Shares After Taking Delivery Of F-150: Will He Buy More?

Why It Matters: Ford is executing and "Mr. Wonderful" is buying more stock.

"I have to give him some credit," O'Leary said of Farley. "He's trying to figure out the supply chain problem he's got with chips and everything else and focus on what he can deliver."

Now the stock is getting a lift on its valuation because Farley is executing, he was smart enough to invest in other EV companies and the tone about Ford's management team has changed, he said.

"This guy is his own guy, he is pushing hard to deliver. That tone of executional excellence is there ... I think this name goes higher," O'Leary said.

F Price Action: Ford was down 0.42% at $20.06 at the time of publication.

Photo: courtesy of Ford.