Ford Motor (NYSE:F) plans to invest $29 billion in electric and autonomous vehicles through 2025, the company announced Thursday when it reported better-than-expected fourth-quarter earnings.
Wall Street was waiting to see Ford pour more money into the emerging technologies after General Motors (NYSE:GM) announced plans last year to increase spending on all-electric and autonomous vehicles to $27 billion between 2020 and 2025.
Ford said its plans include $7 billion in self-driving vehicles and $22 billion in electrified vehicles, up from $11.5 billion through 2022. But not all the announced cash in EVs is new.
The company is including previous investments of roughly $7 billion since 2016, bringing Ford’s new investment commitment to $10.5 billion through 2025.
Ford said a majority of vehicles under the plan will be all-electric, but the company also has hybrid and plug-in hybrid models that continue to have traditional internal combustion engines.
On the earnings front, the company founded by Henry Ford reported adjusted Earnings per Share 34 cents versus an expected loss of seven cents. Revenue came in at $33.2 billion versus $33.89 billion expected.
For the coming calendar year, CFO John Lawler said the company estimates it will earn between $8 billion and $9 billion in adjusted pretax profits and generate between $3.5 billion and $4.5 billion in adjusted free cash flow. That doesn’t factor in a global shortage in semiconductor chips that he said could lower Ford’s earnings by $1 billion to $2.5 billion this year.
F shares were in drive 11 cents, or nearly 1%, to $11.48.