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Ford’s ambition is to become the largest producer of Electric Vehicles. To achieve this, the automaker would have to increase its production of EVs significantly
Ford Motor Company (NYSE: F) has announced its plan to increase the production capacity of its electric vehicles (EVs) to 600,000 units by the end of 2023. This plan will double the number of electric cars the company initially intended to produce over the next two years.
In the announcement made by Ford’s CEO, Jim Farley, ramping up the company’s production will likely put them as the second-largest electric vehicle producer in the US.
Already, the carmaker has recorded impressive stock performance. Ford has spiked nearly 122% in a year, increasing further by 122.53% in its year-to-date record. In addition, the company’s shares have grown 54.38% in the last three months. Over the past month, the automobile company has added 18.19% and an additional 0.05% in the last five days.
Ford to Increase EVs Production Capacity
Ford’s ambition is to become the largest producer of Electric Vehicles. To achieve this, the automaker would have to increase its production of EVs significantly. This desire to expand will spread across Ford’s first new EVs: the Mustang Mach-E, F-150 Lightning, and E-Transit.
The company’s CEO noted that the demand for electric vehicles is higher than anticipated.
A few months ago, Ford revealed plans to have the global sales of its electric vehicles at 40% by 2030 under the company’s turnaround plan.
It would seem like the plan for Ford’s EVs was still a few years away. However, but Farley announced the acceleration of plans in a recent tweet:
“We’re approaching it like we did building ventilators and PPE for Covid. Whatever it takes, find a way. And it’s working. We are now expecting to produce 600,00 electric vehicles per year globally by the end of 2023. 2x our original plan. And that’s before Blue Oval City and other EV sites come online.”
Competitive Sides to Ford’s Plan
Though Ford plans to become the largest producer of EVs in the US, the company’s increased production makes it unclear if it’ll be placed second behind Tesla Inc (NASDAQ: TSLA).
Ford’s Mustang Mach-e sells on three continents, while Ford F-150 became popular as soon as it was announced. Due to this unprecedented popularity, Ford decided to invest $250 million to boost its production.
This boost has helped to create 450 new jobs to help make 80,000 trucks a year.
Despite this, rival company Tesla said in its third-quarter investor update that they are building new factories near Berlin, and Austin, Texas. Tesla also has an annual installed capacity of 600,00 cars per year at its Fremont, California vehicle plant and more than 450,00 at its Shanghai plant.
General Motors (NYSE: GM), another rival company, plans to sell 1 million electric vehicles globally by 2025. GM also plans to up its production by converting at least four of its North American plants to produce EVs in the coming years. These plants are in addition to the ones GM already has in China and Michigan.