The Clap👏 Ford Motor (NYSE: F) CEO Jim Farley revealed the company will split its electric vehicle (EV) operations from its traditional internal combustion engine business into two units within the company.
“Going all in”😤 Ford raised its expected investments in EVs & similar technologies from $30 billion to $50 billion by 2026, with $5 billion coming this year, double that of 2021.
Investors love it🥂 Ford shares jumped over 8% following the announcement as investors applauded the move. Although most investors were urging a full-on spin-off of the EV business, this move is a big step towards that ask.
That’s a big u-turn from just a few days ago⏪ Just a few days ago, Farley denied reports claiming Ford would spin-off its EV business. And while this move isn’t a spin-off, it’s a big stride towards it. Farley says the move will create “separate but complementary businesses.”
What made them turn heads🤔 Not to make any assumptions, but a couple of days ago, U.S. President Joe Biden gave a shout-out to Ford & General Motors in his State of the Union address. He praised their big investments in EVs, & choosing to build factories “here, when just a few years ago, they would have built them overseas.”