As the stock of Ford Motor Company (NYSE:F) increased by 4.6% to $25.59, the highest in almost 20 years, the automaker reached a market capitalization of $100 billion for the first time ever. Electric vehicle plans have been key to achieving such a milestone.
As reported by CNBC, Ford’s market cap reached a historic $100 billion on Thursday, as CEO Jim Farley’s plans to turn the legacy car manufacturer into a true e-mobility force are paying off. Vehicles such as the Mustang Mach-E crossover and the long-anticipated electric version of the beloved F-150 pickup truck are increasing the company’s value.
“Ford’s now worth more than crosstown rival General Motors, at about $90 billion, as well as electric vehicle start-up Rivian Automotive, at $75 billion, that has failed to sustain gains following a blockbuster IPO in November,” CNBC informs.
Still —despite the achievement— Ford is trailing market-cap frontrunner Tesla Inc (NASDAQ:TSLA), which is valued at over $1 trillion.
The company reached the $100 billion market cap from $83 billion a couple of weeks ago and $48.2 billion in 2016. The company has been helped by its outstanding stock recovery over the last several months.
Plans Paying Off
As reported by the Ford Authority blog, Ford recently disclosed “it has doubled its planned yearly EV production from 300,000 units per year to 600,000.”
“The automaker will also nearly double its planned production of the Ford F-150 Lightning to 150,000 units by mid-2023 due to stronger than expected demand, as well as ramp up Mustang Mach-E production to 200,000 units per year by 2023 after a successful first full year on the market that also saw demand for the EV crossover exceed supply.”
In the first week of the year, CNBC’s Jim Cramer went on to say that “The sky is the limit for Ford this year. It’s going to be terrific.”
The soaring demand for its electric products has prompted the company to halt reservations, specifically those for the F-150 Lightning.
Ford is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.