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Whether investors are ready for it or not, the electric vehicle movement is here to stay. Older automotive manufacturers like Ford (NYSE:F) have been forced to adapt or get phased out. Similarly, Ford stock investors are now required to re-evaluate their positions and either join the electric revolution or sit on the sidelines.
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Has this iconic automotive giant successfully adapted to the gradual phasing out of fossil fuels and internal combustion engines? That’s the billion-dollar question.
With heavy competition from automakers that entered into the electric vehicle space much earlier, Ford has had to play a costly game of catch-up. It’s a cause for concern among long-term Ford stock holders.
On the other hand, Ford is making strides in adapting to the age of electrification. Indeed, shareholders should be glad to know that the company is now among the most proactive in this regard.
A Closer Look at Ford Stock
And if you can believe it, Ford stock once stood tall at $32.50, back in 1998. This price level isn’t realistic in the short term. For the time being, the bulls should set their sights on $10 and then $12 as key price targets.
Entering into the Electric Economy
During the summer of last year, Ford shocked some old-school pickup-truck fans with the redesigned 2021 F-150 pickup truck. The fuel-efficient V-6 diesel option was a nice touch, but that wasn’t the shocking part.
Rather, it was the new F-150’s hybrid powertrain option that made a bold statement. Impressively, the PowerBoost hybrid F-150 was designed to travel more than 700 miles on a single tank of gas while maintaining a tow rating that exceeds 12,000 pounds.
With a targeted price of just $45,000, this electrified van will be available in late 2021. It’s a significant move towards Ford’s stated objective of becoming carbon neutral by 2050.
Moreover, Ford’s electric Mustang Mach-E is set to be released later this year. Clearly, Ford is making a statement with these electric vehicle releases. The statement, evidently, is that Ford fully intended to be a front-runner in the American electric vehicle domain.
Getting Charged Up
If electric vehicle fans need something else to get enthused about, here’s another piece of good news. Ford CEO Jim Farley recently revealed that his company is mulling the idea of producing its own battery cells.
“We are discussing [battery] cell manufacturing… I think that’s natural as [EV] volume grows,” Farley said.
How did the trading community react to Farley’s encouraging words? On Nov. 13, Ford stock jumped 4%. Perhaps, then, investors are ready and willing to buy in to the recently installed CEO’s vision of a new, improved and electrification-ready Ford.
The Bottom Line
But that should be just fine because a new CEO and a more ambitious vision mean that Ford can survive and thrive in an increasingly electrified world.