Legacy automotive company Ford Motor Company (NYSE:F) has been around for 120 years. The company now has its eyes set on growth through electric vehicles. One executive is laying out the case for how important the transition is for the future of the company.
What Happened: Ford has launched several electric vehicle models, including new takes on its classic Mustang and F-150 brands.
The company’s brand strategy could get a boost from the shift to electric vehicles, according to the company’s vice president of sustainability Bob Holycross.
Holycross said electric vehicles will revive the company, according to a report by Electrek.
The Ford exec is also seeing support from the company’s CEO Jim Farley and Executive Chairman Bill Ford in a belief that electric vehicles can help lead to a “refounding of the company.”
Ford executives point to the recent Transportation Infrastructure bill and the Inflation Reduction Act adding funding for electric vehicle charging infrastructure and incentives for electric vehicle buyers, respectively.
Holycross sees electric vehicle adoption increasing as prices come down thanks to initiatives like the Inflation Reduction Act.
Related Link: Ford Q2 Earnings Highlights: Revenue And EPS Beat, Strong Electric Vehicle Demand, Dividend Raise And More
Why It’s Important: While some legacy automakers have faced challenges getting everyone on board to make the full transition to electric vehicles, it appears Ford executives are all convinced that EVs are the future.
Ford CEO Farley put an emphasis on growth with electric vehicles when he took over the C-suite in October 2020.
“Turn around automotive operations; allocate capital to Ford’s strongest franchises and high-growth opportunities; produce compelling, uniquely Ford electric vehicles at scale; and stand up new AV-enabled businesses,” Farley said.
Sales of electric vehicles for Ford in the month of August put the company in second place in the U.S., trailing only longtime market leader Tesla Inc (NASDAQ:TSLA).
Ford has sold 25,765 units of the Mach-e in 2022, with August sales of 3,120 units up 115% year-over-year.
The F-150 Lightning electric pickup has seen strong sales and reservation numbers. The vehicle, which was launched in April, has sold 6,842 units since its release, including 2,373 in the month of August.
Electric vehicles sales were up 307.3% year-over-year for Ford in the month of August.
Ford has a goal of hitting 2 million electric vehicles globally by 2026.
F Price Action: Ford shares are down 0.79% to $15.04 on Tuesday and have traded between $10.61 and $25.87 over the last 52 weeks. Shares of Ford are up 15% over the last year and up 33% over the last five years.
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