RBC upgrades Ford on its new electric vehicle strategy, sees shares rallying 22%

Ford Motor Company unveils their new electric F-150 Lightning outside of their headquarters in Dearborn, Michigan on May 19, 2021.
Jeff Kowalsky | AFP | Getty Images

Ford's updated business strategy should bring investors off the sidelines as the company's electric-vehicle future becomes more clear, according to RBC Capital Markets.

The Detroit automaker unveiled a new turnaround plan at an investor day on Wednesday calling for more than $30 billion in investments in electric vehicles through 2025 and targets 40% of its sales as electric by 2030. The company also recently started accepting reservations for the all-electric F-150 Lightning.

RBC analyst Joseph Spak upgraded the stock to outperform from sector perform, saying in a note to clients on Thursday that the plan addressed some lingering concerns about the company's pivot to electric vehicles.

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