Ford (F) executives are opening up the cash vaults and reaching in big to spend on funding an electric vehicle future.
The company said during an investor day on Tuesday it will spend $30 billion on electric vehicle development — including battery development — by 2025. Previously, the auto giant said it would spend $22 billion on its EV ambitions by 2023. The company anticipates that 40% of its global vehicle volume will be fully electric by 2030 fueled by new models of the electric Mustang Mach-E and F-150.
The company also revealed it has amassed 70,000 reservations for its new F-150 Lightning in one week.
Despite the increased EV spending, Ford recommitted to its long-term operating margin goal that has been a frequent point of focus by Wall Street analysts. The company sees adjusted operating profit margins to reach its prior 8% target in 2023.
Ford dubbed its new operating plan Ford+.
“I’m excited about what Ford+ means for our customers, who will get new and better experiences by pairing our iconic, world-class vehicles with connected technology that constantly gets better over time,” said Ford CEO Jim Farley in a statement. “We will deliver lower costs, stronger loyalty and greater returns across all our customers. “This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T, and we’re grabbing it with both hands.”
Ford shares rose 1.7% in pre-market trading Wednesday.
This is breaking news and will be updated.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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