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We believe there is further upside for the US car maker's share price
Thursday 27 May 2021 Author: Ian Conway

Ford Motor (F:NYSE) $13.06
Gain to date: 86.8%
Original entry point: Buy at $6.99, 13 August 2020

Shares in US car maker Ford continue to gain since we said to buy last August as the company reaffirms its commitment to electric vehicles.

As part of his $2.3 trillion infrastructure package for the US economy, President Biden has promised $174 billion of investment in electric vehicles, which provides a strong tailwind.

On 20 May, during the President’s visit to Ford’s factory in Dearborn, Michigan, the car maker announced it would establish a battery joint venture in the US with Korea’s SK Innovation. The total investment is expected to top $5 billion and production is expected to begin mid-decade.

The company also unveiled its latest version of the iconic F-150 pickup truck, with permanent four-wheel drive and an all-electric power train.

Within 12 hours of the news, the company had 20,000 reservations for the vehicle, a resounding endorsement of its electric vehicle strategy according to chairman and chief executive Jim Farley.

SHARES SAYS: We expect investors to remain enthusiastic
about Ford’s expansion into electric vehicles. Keep buying. 

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