On Monday, Ford (F) closed its stock price at $20.15 — the first time to cross $20 in 20 years. What’s changed? Well, its renewed focus on electric vehicles (which has popularly been Musk’s cup of tea). Ford’s new CEO has emphasized EVs’ importance by launching several new models such as the Mustang Mach-E and the Bronco. Needless to say, these models have been well received by both the environmentally conscious community and by the traditional customer base.
Ford has also started selling $2.5b worth of bonds whose proceeds will support clean transportation projects — watch out for the F-150 Lightning. This is the largest ever green bond offering put out by a US enterprise. Saying that Ford took the sustainability issue seriously is an understatement.
why it matters
As automakers are increasingly under pressure to cut carbon emissions, Ford has taken concrete steps to address the issue, and investors like it. The impressive gains on the stock market also come in a period of intense scrutiny over the semiconductor crisis, which Ford has dealt with better than competitors.