During CEO Jim Farley’s first investor day on Wednesday, Ford Motors Company’s shares rose 8.5 percent. Investors applauded the automaker’s new “Ford+” plan, which aims to boost earnings and aggressively expand into new high-tech industries. It increased again on Thursday, rising 7.3 percent by midday.
Executives also provided detailed sales predictions for electric vehicles and profit and other financial metrics that Wall Street may use to assess the company’s progress on Wednesday. RBC Capital Markets analyst Joseph Spak said, “Bottom-line, we feel much better about the more cohesive strategy as Ford Motors is focusing on their strengths. Ford still needs to execute, but the upside opportunity is clearer to us.”
Ford anticipates its commercial sector to generate $45 billion in revenue by 2025, up from $27 billion this year. Hardware and adjacent and new services that Ford can address are included. Ford will launch “Ford Pro,” a new car services and distribution division dedicated to commercial and government clients.
By July 2022, Ford Motors expects to surpass Tesla in terms of car sales capable of substantial remote updates, and by 2028, it expects to have 33 million over-the-air-enabled Ford and Lincoln vehicles. Such a linked fleet might compete with GM, the company’s major American rival, which has stated that by 2023, more than 7 million of its vehicles worldwide will be capable of receiving OTA updates.