For some time now, Ford stock hasn’t exactly been the envy of Wall Street and investors. However, back in February, the tide started to turn as analysts began changing their tune in terms of ratings and price targets. Ford stock began to surge as the automaker’s commitment to electric vehicles won over investors, and outlooks continue to improve as the year has gone by. Most recently, Ford’s stock prices grew five percent near the end of October as the company managed to turn a decent profit amid numerous supply chain issues, and now, Ford shares have reached a 20-year high, according to Automotive News.
Ford’s stock hit $19.72 this morning, which is the highest it’s been since September 2001 and nearly three times what shares were worth when CEO Jim Farley took over the top spot at the automaker just over a year ago. The day before Farley officially replaced Jim Hackett as CEO last October, the company’s stock price sat at just $6.66, which was actually an improvement over the sub-$5 low it reached when the COVID-19 pandemic took over last spring.
“2021 has been truly a breakthrough year for Ford – easily the most important year strategically for the company since the financial crisis,” said Morgan Stanley analyst Adam Jonas. “Ford is convincing the stock market that they have a viable future.”
The main reason for this stunning turnaround stems from Ford’s commitment to EVs, as well as its massive investment in both electric vehicles and battery production, as well as Farley’s focus on subscription services, which are a way to generate recurring revenue for the automaker, and the launch of a host of desirable new vehicles including the Ford Mustang Mach-E, Ford Bronco Sport, and Ford Bronco, to name a few.