Ford Announces EV Investments Ahead Of Investor Day: What You Need To Know

Ford Motor Company F said Wednesday that it's increasing spending on electric vehicle development from $22 billion to $30 billion by 2025.

Dearborn plans to substantially expand its electric vehicle lineup and anticipates that 40% of its global sales will come from electric vehicles by 2030.

CEO Jim Farley is expected to provide more details later Wednesday during Ford’s virtual investor day.

Why It Matters: Wall Street has high expectations for the company. Wednesday’s investor day is “a big deal. It’s my management team’s coming-out party,” Farley said last week.

“Yes, we’ve had a couple good quarters. That’s great, but really the big test is what’s our plan for the company and how it’s going to add value.”

Since the May 19 debut of its new F-150 Lightning pickup truck, Ford said Wednesday it has received 70,000 reservations for the EV, displaying a strong interest from consumers.

The company’s stock has doubled since Oct. 1, when Farley became CEO.

What’s Next: Wednesday’s investor day is an opportunity for the company to build confidence in its investors, according to one analyst. 

“Since Jim Farley has taken over as CEO, Ford has promised increased transparency and measurable [key performance indicators] so we can track Ford’s progress and execution,” RBC Capital Markets analyst Joseph Spak said in a note. “We expect those, along with financial targets, to be detailed at the event.”

Ford is expected to reaffirm its long-term margins and focus on areas for development like electric vehicles.

Analysts are eager to hear updates regarding the company’s promised 8% profit margin target, which was promised by Mark Fields and Jim Hackett and never occurred. 

F Price Action: Ford shares were up 6.76% at $13.67 at last check Wednesday. 

Photo courtesy of Ford.