Ford Motor Co. stock rose. On Friday, Wall Street oversaw a quarterly loss of nearly $ 3 billion and a loss of sales to target the automaker’s plans to invest more in electric and self-driving cars.
Ford F,
late Thursday reported a broad fourth-quarter loss and lower-than-expected quarterly Wall Street sales, but it showed a clearer first-quarter outlook and said it would be close to its investments in electric and autonomous vehicles to double.
“We were very encouraged by those,” Emmanuel Rosner told Deutsche Bank in his note on Friday.
The company’s operating performance in the second half of 2020 and the 2021 direction “suggest that the company could turn a corner with its profit and cash generation, benefiting from new and renewed products, prices strong and mixed, and global cost reductions and efficiencies. , ”He said.
Ford’s plan to invest in EVs and self-driving cars rose to $ 29 billion, bringing in $ 22 billion for EVs through 2025. That shows CEO Jim Farley “two- really accelerating the company’s transformation towards an electronic and connected future. ”
Read: Electric vehicles make up a larger slice of U.S. retail sales, Edmunds says
Ford is taking “stronger and more decisive action on EV (and AV),” Joseph Spak of RBC Capital said in his note. Ford is “slowing down GM” and raising the investment. This is absolutely necessary. ”
A Ford valuation of approximately $ 45 billion was submitted by TSLA Tesla Inc.
$ 800 billion and GM General Motors Co.,.
$ 79 billion. Tesla, of course, only makes electric vehicles, and GM has promised to do the same by 2035 and become a carbon-neutral company by 2040.
One concern that united with Ford, however, was that the production of the new F-150 pickup truck, the No. 1 vehicle sold in the U.S. for decades of running and one crown jewel was blocked. company. The company has for some time cut back on factory movements.
Ford led for 2021 adjusted earnings before interest and taxes of around $ 7.1 billion and $ 8.1 billion, which was “reasonable” considering the chip shortage, Morgan Stanley’s Adam Jonas said in a note.
Shares of Ford have gained 40% in the last 12 months, compared to gains of around 17% for the S&P 500 index. SPX,