Ford Motor’s (NYSE:F) stock price has more than doubled since Jim Farley became CEO a little less than a year ago, and yet he says the shares “absolutely” have more room to run as he begins to lay the groundwork for a massive turnaround plan.
Shares of the automaker closed Monday up by 2.8% to $14.16 a share, a 113% increase since Farley became CEO on Oct. 1. They opened Tuesday morning up 41 cents, or 2.9%, to $14.57.
Still, Farley isn’t satisfied with the company’s current market valuation at $56 billion. It trails other key competitors, including General Motors (NYSE:GM) at $77.5 billion or EV market leader Tesla (NYSE:TSLA) at $755.5 billion.
Farley said the joint venture with South Korean battery maker SK Innovation is a good example of company’s ongoing transformation under his Ford+ turnaround plan that was announced in May. The plan aims to make existing operations more profitable and better position the automaker for emerging segments such as data as well as connected, autonomous and electric vehicles.
"I would say this is the largest transformation of Ford since the Model T scaled," Farley said. "I don’t think we’ve been fully recognized, yet, for our winning status in this digital transformation of our industry."
Farley’s predecessor, Jim Hackett, was heavily criticized for not pivoting more quickly into new technologies such as electric and autonomous vehicles. He previously said that Ford saw “no advantage” in producing its own battery cells.
The investment with SK is in addition to $30 billion the company previously said it would invest in electric vehicles through 2025, about $7 billion of which had already been invested before February.
