Why This Investor Bought Ford Stock, Plans To Hold 'For A Very Long Time'

Ford Motor Co F and Rivian Automotive Inc RIVN confirmed last week that the two companies no longer plan to jointly develop an electric vehicle.

The announcement shows that Ford CEO Jim Farley is incredibly confident in the company's EV strategy, Virtus Investment Partners' Joe Terranova said Wednesday on CNBC's "Fast Money Halftime Report."

Farley must be confident Ford will be able to cement its place in the EV market by itself and that the company will be able to deliver the 600,000 EV vehicles that are expected by 2023, Terranova said.

Ford still maintains a 12% stake in Rivian, which helps strengthen the company's balance sheet, he noted.

See Also: Is Ford Planning To Sell Its Rivian Stake? Jim Cramer Weighs In

Ford reinstated its dividend and has technical momentum behind it, which led Terranova to buy Ford shares this week.

"Very comfortable, very happy taking a position in Ford. I love the management strategy. I'm reassessing the ending of this kind of partnership with Rivian ... and I will be holding Ford, I believe, for a very long time," Terranova said.

F Price Action: Ford has traded as high as $20.79 and as low as $8.43 over a 52-week period.

The stock was up 0.10% at $20.21 at time of publication.

Photo: courtesy of Ford.