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Ford beats Tesla to become auto industry’s top growth stock in 2021

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The Ford F-150 Lightning all-electric vehicle during an augmented reality presentation at Motor Bella Auto Show Pontiac (Michigan) on Tuesday September 21, 2021.

Bloomberg | Bloomberg | Getty Images

DETROIT – Shares of Ford MotorThe stock rose by approximately 140% in the last year. TeslaThe larger, crosstown rival is. General MotorsA host of electric vehicle startups to be the top performing automaker stock in 2021.

The company’s recent direction under Jim Farley (auto veteran) has been rewarded by investors. took the helm in October 2020After Jim Hackett was removed from the board, industry insiders were no longer allowed to speak.

Farley promised to be more openDirect contact with investors. He launched also the Ford+ restructuring planThe company shifts more resources towards electric vehicles, such as the F-150 Lightning pickup-EV.

We are executing our plan, and will continue doing so to ensure that every business in the portfolio has a long-term future. He said, “If it doesn’t work out we will restructure it.” in a January 2021 interview.

Morgan Stanley analyst Adam Jonas called 2021 “truly a breakthrough year for Ford… easily the most important year strategically for the company since the financial crisis.”

Farley announced on Twitter on December 10th that Ford will triple the production of its electric Mustang Mach-E Mustang to over 200,000 units annually for North America, Europe and Asia. CNBC had heard from Farley the previous day that the company halted reservationsThe F-150 Lightning had 200,000 sold.

The shares rose 9.6% that day to close at $21.45 per share, a level roughly equal to the 20-year peak.

The automaker’s third-quarter earnings were released on Oct. 28, making it the best day of the year for investors. raised its yearly guidanceThe company delivered earnings per share that exceeded analysts’ expectations. The shares rose 8.7%.

Also, shares soared 8.5% in May 26, during Ford+’s investor conference. The stock also rose 8.4% after Deutsche Bank introduced a short-term buy option to the stock in advance of 2020 earnings reports.

Ford stock has increased by over 200% since Farley became the Ford CEO more than fifteen months ago. The company’s ability and willingness to implement the Ford+ plans, including accelerating EV development plans, will determine whether Farley can maintain his winning streak. achieving an 8% adjusted profit marginBefore interest and taxes in 2023

Ford’s price target is $20.25 per share, and the long-term growth rate for Ford is 67.8%. According to FactSet analysis by 22 analysts. The closing share price was $20.77 last year. That’s an increase of 136.3% over 2021.  

Ford’s market cap is $83Billion. It still has some work ahead to make its market share comparable to its existing competitors and Rivian EV-startups.

This is how top emerging EV companies and other legacy automakers ended last year, as well as what analysts expected from them for 2022. Source: FactSet.

Tesla (TSLA)$1,056.78, up 48.8%

  • Rating/target: Hold/$878
  • Market capitalization: $1.1 trillion

Lucid (LCID) since July 26, 2007:$35.85, up 41.8%

  • Rating/target: Overweight/$44.33
  • Market Cap: $62.6 Billion

Volkswagen (VWAGY): $29.39 up 41.2%

  • Rating/target: Overweight/$28.77
  • Market capitalization: $127.9 million

General Motors (GM),$48.53, up 40%

  • Rating/target: Buy/$74.45
  • Market capitalization: $85.1 million

Toyota (TM).$185.30, an increase of 19.9%

  • Rating/target: Overweight/$211.59
  • Market Cap: 253.2 billion

Ferrari (RACE).$258.82, an increase of 12.8%

  • Rating/target Hold/$258.40
  • Market capitalization: $47.6 million

Stellantis (STLA): $18.76, an increase of 10%

  • Rating/target: Buy/$26.51
  • Market capitalization: $59.2B

Fisker, FSR:$15.73 up 7.4%

  • Rating/target: Overweight/$25.50
  • Market Cap: $4.7 Billion

Rivian, (RIVN)Price: $103.69 up 2.9%

  • Rating/target: Overweight/$133.92
  • Market capitalization: $93.4 billion

Nio (NIO):$31.68, down by 35%

  • Rating/target: Buy/$59.18
  • Market Cap: $52.1 Billion

Nikola (NKLA).$9.87. This is a 35.3% decrease

  • Rating/target: Hold/$15.29
  • $4 billion

Lordstown Motors (RIDE).$3.45 down 82.8%

  • Rating/target: Underweight/$4.60
  • $6663.2 Million

– CNBC’s Michael BloomContributed to the report.

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