Ford’s Market Value Closes Above GM’s For First Time In Five Years

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Ford’s Market Value Closes Above GM’s For First Time In Five Years
Ford’s Market Value Closes Above GM’s For First Time In Five Years

For the first time in more than five years, Motor Co.’s stock has outperformed competitor General Motors Co. in terms of market value.
At the closing of trading in New York, Ford had a market value of $83 billion, just ahead of GM’s $82.9 billion.

  • Ford shares have more than doubled this year and have been trading around a 20-year-high.
  • The valuations of Ford and GM still lag behind that of electric-truck maker Rivian Automotive Inc., which went public in November this year.

Ford last outperformed its Detroit-based rival on Sept. 14, 2016, when it concluded the day with a market capitalization of $48.2 billion.
Ford’s stock has more than quadrupled in value this year, and is currently trading at a 20-year high. Since Jim Farley took over as CEO 14 months ago and pushed Ford’s drive towards electric vehicles, they’ve been on a roll. The first year of Ford’s electric F-150 truck, which debuted this spring, was sold out, and the company aims to produce 600,000 EVs yearly by 2024.

The unexpected resignation of the CEO of GM’s self-driving subsidiary Cruise just ahead of expected permission for the debut of a robotaxi service in San Francisco stunned Wall Street. GM’s objective is to go all-electric by the middle of the next decade.
Ford and GM are still undervalued compared to Rivian Automotive Inc., an electric vehicle manufacturer that went public in November in the year’s largest IPO. Rivian, which dropped after announcing a production shortage, is now worth $92.6 billion. With a market value of $1.09 trillion, Tesla Inc., the world’s largest carmaker, dwarfs the competitors.

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