Ford Motor Co. (F) – Get report the shares peaked in more than two years on Thursday after TheStreet founder Jim Cramer highlighted the electric vehicle investment drive of President Joe Biden’s new administration.
Cramer told CNBC’s Mad Money program last night that Biden’s focus on clean energy will accelerate changes in the automotive industry that are already underway, a topic that was also highlighted by Deutsche Bank’s Emmanuel Rosner, who increased his goal price at Ford at $ 2 to $ 11 per share, shortly after adding it to the bank’s ‘Conviction Buy’ list before the automaker’s fourth quarter earnings on February 3.
“Be ready for stricter environmental regulations that push people into electronic vehicles … and I am increasingly attracted to Ford, because they are electrifying the F-150 and have a good investment in Rivian, the developer of electric trucks” , Cramer said. “General Motors (GM) – Get report it works too, and both are cheap. “
Ford’s shares were up 7.3% at the start of Thursday’s trading session, changing hands at $ 11.66 each, the highest in more than two years and a move that extends its six-month gain to about 75%. GM shares were also on the move, up 1.11%, indicating a new ten-year high of $ 56.97 each.
Democratic control of the Senate after the second round of elections in Georgia supported the broader electric vehicle sector, as well as the appointment of former Michigan governor Jennifer Granholm as Energy Secretary by President Biden at the end of last year.
Biden has pledged to build 550,000 electric vehicle charging stations while creating about 1 million new jobs through investments in clean energy research.
Granholm, who has close ties to the automotive sector after her two terms as governor, will need confirmation from the Senate to take up her job and work alongside Transport Secretary named Pete Buttigieg.