Ford is roaring back to life and, according to CEO Jim Farley, the automaker is "just getting started."
Ticker Security Last Change Change % F FORD MOTOR CO. 16.86 +1.35 +8.70%
Shares jumped to a seven-year high on Thursday after it boosted its full-year guidance and now expects to earn as much as $11.5 billion in profits. This followed a better-than-expected third quarter in which revenues hit $35.7 billion.
Ford to resume 10-cent dividend in 4Q
Ford will also resume its dividend in the fourth quarter to shareholders of record on Nov. 19 starting at $0.10, which has been approved by the board.
Speaking to investors on the company's earnings call, Farley touted the Ford's fully networked vehicles. "We'll be moving from 1 million vehicles today to 33 million by 2028. That's scale. At the same time, we're moving aggressively to lead the electric vehicle revolution, substantially expanding our battery production," he said.
He continued: "In fact, we already announced plans that will give us enough battery production to meet our mid-decade goal of 141 gigawatts, which is enough to build more than 1 million battery electric vehicles a year, and I think we'll need more."
“We’ll be moving from 1 million vehicles today to 33 million by 2028. That’s scale. At the same time, we’re moving aggressively to lead the electric vehicle revolution, substantially expanding our battery production.”
– Ford CEO Jim Farley
Farley, who took the reins in October of last year, has been rapidly transforming the automaker by investing in battery production, with $7 billion earmarked for BlueOval City in Tennessee and the BlueOval SK Battery Park in Kentucky, which will create an estimated 11,000 jobs.
A Ford all-electric F-150 Lightning truck prototype is seen at the Rouge Electric Vehicle Center in Dearborn, Michigan, Sept. 16, 2021. ((REUTERS/Rebecca Cook) / Reuters Photos)
The CEO is also transforming its most popular models to EVs, including the F-150 Lightning, an EV version of America’s bestselling truck and Mustang Mach-E.
Ford is also a backer, along with Amazon, of electric truck maker Rivian, which is planning to go public.
The stock has advanced over 92% this year, besting the S&P 500's 22% gain.
Earlier this month Ford said it delivered 156,614 vehicles in September, more than any other automaker, which was a 34.3% improvement over August, but down 17.7% from the same month last year.
Ticker Security Last Change Change % GM GENERAL MOTORS CO. 54.24 -0.02 -0.04%
Ford is competing with General Motors. CEO Mary Barra recently rolled out a plan to double revenue by 2030 while expanding profit margins on its quest to become the world’s top electric vehicle maker.
Ticker Security Last Change Change % TSLA TESLA, INC. 1,077.04 +39.18 +3.78%
Both are also taking direct aim at Elon Musk's Tesla, which saw its market value top $1 trillion this week after posting a record quarter.