Ford’s stock tops $20 a share for the first time in more than 20 years

- Advertisement -


  • Ford’s stock rose above $20 a share on Monday for the first time since September 2001, as investors increasingly show confidence in CEO Jim Farley’s turnaround plan.
  • Since Farley took control of the automaker last October, Ford’s stock has nearly tripled.
  • Ford shares were up as much as 5.9% during Monday morning trading.

- Advertisement -

DETROIT – Ford Motor shares rose above $20 a share on Monday for the first time since September 2001, as investors increasingly show confidence in CEO Jim Farley’s turnaround plan.

- Advertisement -

Since Farley took control of the automaker last October, Ford’s stock has nearly tripled to below $7 a share. Shares of Ford were up 5.9% during trading Monday, closing up 4.5% at $20.15 per share before retreating slightly.

Ford’s stock has gained about 129% so far this year. That’s far higher than other automakers, such as General Motors, 43%, and Tesla, which grew nearly 65% ​​this year.

- Advertisement -

This kind of rally is something that takes away from Ford’s last two CEOs. The lagging stock price contributed heavily to the departure of Farley’s predecessors Mark Fields and Jim Hackett.

It’s not a single thing Farley has done but a parade of major moves over the past year that has Ford once again gaining traction with investors. Part of Farley’s Ford+ turnaround plan, the actions range from restructuring the management team to announcing billions of dollars in autonomous and electric vehicles.

“We are seeing clear evidence of significant change at Ford, and one that has happened in a very short period of time, with Ford setting a new track record of financial outperformance, and showing that in EV/AV/Digital Its transition has “accelerated in the world,” Credit Suisse analyst Dan Levy said in a recent investor note.

Recently, Ford announced plans to repurchase up to $5 billion of its high-yield bonds as part of a broader plan to restructure its balance sheet.

Last month, Farley told CNBC that Ford shares “absolutely” have more room to move as the turnaround plan continues.

“There is a growing belief that Ford will be one of the winners in this new digital transformation in the industry,” he said during a phone interview about plans to invest $11.4 billion in US production of electric batteries and vehicles. “We have a lot of incredible upside.”

In addition to tough pivoting to EVs and turnaround planning, Farley has recruited high-profile executives for the automaker. Among them are Doug Field, a former Tesla and Apple executive, and Mike Amend, most recently president of Online for Lowes.

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox