Ford had previously announced plans to spend $22 billion on electrification efforts and had recently revealed plans to build two new battery factories in a joint venture with Korean battery maker SK innovation. Last week, Ford also unveiled plans for an all-electric version of the F-150 pickup, the best selling vehicle from any US automaker. It has already started selling an electric SUV under its iconic Mustang name, the Mustang Mach-E.
But Ford is still playing catchup with all-electric vehicle maker Tesla ( and also with traditional automakers, such as its alliance partner )Volkswagen ( and domestic rival )General Motors (. Both have more extensive EV offerings and more aggressive electrification targets. GM says it is aiming to sell only )emission-free vehicles by 2035.
And investors are more interested in backing automakers with ambitious EV plans rather than traditional automakers. Tesla is by far the most valuable car company, despite having a fraction of the sales and profits of traditional automakers. Tesla’s market value is roughly equal to that of the value of the five largest global automakers combined. Shares of Ford ( rose 2% in premarket trading on its EV announcement. )