Risk, returns & timeframes illustration
1 min read
March 22, 2022
by

Ford’s foot to the floor on electric

Ford’s got their pedal to the metal in the EV race but will the computer chip shortage put a spanner in the works? ⚡ Discover the electric avenue.
Risk, returns & timeframes illustration
1 min read
March 22, 2022
by

Ford’s foot to the floor on electric

Ford’s got their pedal to the metal in the EV race but will the computer chip shortage put a spanner in the works? ⚡ Discover the electric avenue.
Table of contents
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

The race to deliver electric vehicles (EVs) is revving up this year and Ford (F) is getting fast and furious. We don’t just mean the one-of-a-kind electric Ford Mustang Mach-E GT that’s cutting loose. The company is also unbridling the purse strings. After initially planning to pour US$30 billion into EVs by 2025, Ford’s now expected to up the octane on spending to possibly hit the heady heights of US$50 billion.

A chunk of that spending is set to fuel Ford’s big European ambitions. Last week Ford revealed their plans to release three new electric passenger vehicles and four new electric models of their iconic Transit van in Europe by 2024. Oui oui! Hopes are they can build them without missing pieces. The European EV push is part of Ford’s master plan to split the family into two separate businesses. This will create Ford’s electric business, Ford Model e, operating like a start-up aiming to accelerate electric vehicle production. Ford’s legacy internal combustion engine (ICE) division will be called Ford Blue and plans to be the company’s high-revving ‘profit engine’ while Model e puts the (electric) pedal to the metal. So Ford hasn’t completely de-ICEd, ice’d, baby, as some analysts had expected. But Ford CEO Jim Farley calls it ‘one of the largest transformations in the global automotive business’.

Ford heading to Splitsville is a major advantage and will likely make the spreadsheets easier for analysts and investors to value Ford’s EV business. Investors have shown they are happy to stamp higher valuations to electric vehicle companies than their gas-guzzling counterparts, even those with minimal earnings. There’s hope Ford can deliver on their big public ambitions. *Cough* …still waiting for our CyberTruck, Elon! 🚘

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

More recent news articles

More recent learn articles

6 min read
Nov 28, 2023

Black Friday’s record-breaking US$9.8 billion US online sales, US$70.9 billion globally

New Zealand imported Black Friday from the US, but that doesn’t mean we’re spending up large during tighter economic times. While Black Friday spending soared in the US, it seems Kiwis weren’t quite so keen to part with their hard-earned cash. So who was spending up large in record US Black Friday shopping?
Read more
6 min read
Nov 21, 2023

Underrated Thanksgiving stocks and hopes for a seasonal market rally

While 2023 may have felt like a bumpy ride for investors it seems that recession predictions were stymied by a buoyant American economy. Could the road ahead bring in fresh optimism echoing rallies of holidays past?
Read more
5 min read
Nov 14, 2023

Affirm shares surged 24% ahead of holidays splurge

In a world of instant gratification, is buy now pay later (BNPL) just what we do now? While BNPL providers aren't rapidly bringing on more customers and people aren’t using BNPL more, shoppers are missing more payments sinking into a debt cycle helping providers’ revenue to climb. Is this why Affirm’s stock has soared 153% this year?
Read more

More recent news articles

More recent learn articles

6 min read
Nov 28, 2023

Black Friday’s record-breaking US$9.8 billion US online sales, US$70.9 billion globally

New Zealand imported Black Friday from the US, but that doesn’t mean we’re spending up large during tighter economic times. While Black Friday spending soared in the US, it seems Kiwis weren’t quite so keen to part with their hard-earned cash. So who was spending up large in record US Black Friday shopping?
Read more
6 min read
Nov 21, 2023

Underrated Thanksgiving stocks and hopes for a seasonal market rally

While 2023 may have felt like a bumpy ride for investors it seems that recession predictions were stymied by a buoyant American economy. Could the road ahead bring in fresh optimism echoing rallies of holidays past?
Read more
5 min read
Nov 14, 2023

Affirm shares surged 24% ahead of holidays splurge

In a world of instant gratification, is buy now pay later (BNPL) just what we do now? While BNPL providers aren't rapidly bringing on more customers and people aren’t using BNPL more, shoppers are missing more payments sinking into a debt cycle helping providers’ revenue to climb. Is this why Affirm’s stock has soared 153% this year?
Read more