What happened?
The automaker Ford has jumped sharply! What are the main drivers of such rapid growth? Let’s find out! First, the auto giant Ford has started to lay the groundwork to transform its petrol-driven cars into electric vehicles.
Ford’s Electrification revolution plan
The company is going to spend $30 billion in investments for electrification until 2025.
Ford intends to make EVs a significant part of its total product mix: 40-50% of all Ford’s vehicles should be electric by 2030.
It makes investors excited. More and more people add the stocks of EVs to their portfolios. Indeed, electric vehicles are the trend of the last years as the key problem for the whole world remains climate change. Thus, renewable energy stocks are on the rise right now. Apart from Ford, pay attention to Tesla, Apple (it plans to launch its EV car), General Motors.
Ford’s performance
The Ford stock has jumped by 65% from $8.79 to $14.50 since the end of 2020. Just to compare, the broad market index, S&P 500 (US 500) has surged by 16% in the same period.
Chip shortage
Last week, the company claimed it would be forced to cut production even more at its factories in North America amid the current global semiconductor shortage. It may weigh on the stock price in the near to medium term, but this problem is global, so it will impact many stocks linked to semiconductors. Thus, this obstacle is not so serious.
Tech outlook
There is a nice uptrend in the daily chart. The stock price has broken above the psychological mark of $15.00 and even pulled back to this level after a breakout – a sign of the continuation of an uptrend. We might expect the stock price of Tesla to advance to June’s high of $16.50. If it manages to cross this resistance level, the stock may jump to the next round number of $17.00. Support levels are the recent low of $15.00 and the 100-day moving average of $14.00.
Download the FBS Trader app to trade anytime anywhere! For personal computer or laptop, use MetaTrader 5!
