Cramer: Ford Will Have "Terrific" 2022 After 136% Surge
Ford Motor Company (NYSE:F) is set to have a meteoric 2022 as the automotive giant will double production capacity of the electric F-150 pickup truck. Further, the 136% share surge...
Ford Motor Company (NYSE:F) is set to have a meteoric 2022 as the automotive giant will double production capacity of the electric F-150 pickup truck. Further, the 136% share surge last year will give its stock momentum - CNBC’s Jim Cramer said “The sky is the limit for Ford this year. It’s going to be terrific.”
Ford’s achievements in 2021 will carry on into 2022, “Mad Money” host Jim Cramer revealed on Squawk Box. On the second trading day this year, Ford stock jumped 10% to $24 and almost 5% Monday.
Jim Farley’s appointment as CEO in October 2020 has given the company a huge lift, as “Ford was left for dead on Wall Street before the Covid-19 outbreak, hitting a pandemic low around $4 a share in March 2020,” CNBC reports.
Cramer’s view is rooted in Ford’s announcement about doubling the annual production capacity of the electric F-150 pickup to hit 150,000 units by 2023. He went on to say that the legacy manufacturer will be able to build 200,000 electric vehicles (EVs) this year.
Automotive News reported in November that the company is expecting to produce 600,000 EVs in 2023 around the world.
Cramer also drew a line between Farley and Elon Musk by saying, “I’ve been a big backer of Ford as part of the charitable trust. Farley has done a remarkable job. He’s ahead of Musk when it comes to the pick-up truck.”
At present, while Ford is ramping up production of its long-anticipated vehicle, Elon Musk’s Cybertruck has been issue-ridden and is facing several postponements —production is believed to start in 2023.
In the meantime, Ford has had to pause reservations of its F-150 Lightning model due to the soaring demand.
Cramer also added that the Ford Mustang Mach-E SUV “does make a lot of money… [Farley] doesn’t like to make things that don’t make money,” as 2023 seems to be a critical year for the automotive giant.
By then, Ford also expects to triple the output of this vehicle and pass the 200,000 units-per-year mark.
Ford is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families.