Shares of Ford Motor (NYSE:F) soared by roughly 140% last year, beating Tesla (NASDAQ:TSLA), its larger crosstown rival General Motors (NYSE:GM) and a host of electric vehicle start-ups to become the best performing stock among automakers in 2021.
Investors have rewarded the new direction under auto veteran Jim Farley, who took the helm in October 2020 after the Ford board ousted industry outsider Jim Hackett.
Farley promised to be more open and direct with investors. He also launched the Ford+ restructuring plan, which shifts more resources to build electric vehicles like the upcoming F-150 Lightning pickup.
"We’re executing our plan and we’ll continue to do that so every business in our portfolio has a sustainable future. If not, we will restructure it," he said in a January 2021 interview.
Morgan Stanley analyst Adam Jonas said it was "truly a breakthrough year for Ford … easily the most important year strategically for the company since the financial crisis."
Ford’s largest single-day share increase came on Dec. 10 when Farley confirmed on Twitter that it would triple production of the electric Mustang Mach-E to more than 200,000 units per year for North America and Europe by 2023. He told mainstream media the day before that the company halted reservations of the F-150 Lightning after they hit 200,000 units.
Since Farley took the helm more than 15 months ago, the stock is up by more than 200%. The run-up will continue if the company is able to deliver on Ford+ plan initiatives that included accelerating EV plans, observers say, and achieve an 8% adjusted profit margin before interest and taxes by 2023.
F shares jumped first thing Tuesday by $1.23, or 5.7%, to $23.00.
