During Ford’s investment call this week, the automaker made waves for their EV plans. Ford expects that 40% of its global sales will come from EV’s by 2030. Additionally, the automaker announced an additional $8 billion in EV development spending from 2021-2025.
Ford’s total EV investment now totals almost $20 billion with their battery joint venture with SK Innovation. This partnership will create two North American factories to produce batteries for 600,000 EVs per year.
During the same call, Ford announced that they have started to generate cash flow. Which means Ford can scale their EV and commercial vehicle businesses. They predict that the company would post an 8% pre-tax profit margin in 2023.
Ford released the Mustang Mach-E earlier this year and recently announced the electric F-150 Lightning. The company plans to release multiple EV SUVs, compacts and smaller cars for both the North American and European markets in the coming years. In addition, the company also plans to build additional EV cargo cans and pickup trucks to round out its EV lineup.
In response, Wall Street loved the announcement, as Ford shares surged more than 8% by closing bell.
