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Ford Stock, IBD Stock Of The Day, Clears Buy Point As EV Plans Accelerate

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Ford stock is the IBD Stock of the Day as the automaker cleared a buy point Wednesday.

The bullish moves follow a steady run higher over the past year, helped by Ford's (F) more aggressive stance on investments in electric vehicles and other technology.

Ford Stock

Shares rose 5.6% to close at 12.27 in the stock market today, clearing a 12.14 entry from a three-weeks-tight pattern. That's after finding support at their 21-day line on Tuesday.

Investors also could use 12.25 as an entry. If Ford stock holds in its range, it would have had a flat base with that entry at the end of the week. Ford stock has a strong 93 Composite Rating and an EPS Rating of 75.

The No. 2 U.S. automaker may also be getting an extra boost Wednesday as it reportedly partnered with Oshkosk (OSK) on a winning bid to produce new delivery vehicles for the U.S. Postal Service.

General Motors (GM) rose 3.5%. Volkswagen (VWAGY) was up 1.7%. Tesla (TSLA) added 6.2%.

EV Transition Picks Up Speed

Earlier this month, Ford stock rose after the company reported a surprise quarterly profit and a big boost to EV investments.

Spending in electric and autonomous vehicles will total $29 billion through 2025, more than double prior guidance of $11.5 billion. Of the $29 billion, Ford will spend $22 billion on EVs and $7 billion on autonomy.

The bigger amount even outpaces the $27 billion commitment from rival GM, which had already hiked it from $20 billion.

"We are accelerating all our plans – breaking constraints, increasing battery capacity, improving costs and getting more electric vehicles into our product cycle plan," CEO Jim Farley said then.

However, the company said chip shortages will hurt production and profit this year.

And last week, Ford announced the immediate launch of the Mustang Mach-E electric crossover in Europe amid plans to go "all-in" on electric vehicles there. The new Mustang will compete with Tesla's Model Y.

Meanwhile, Ford is an investor in electric truck maker Rivian, whose shares could go public as soon as September and set a record for the biggest EV IPO.

Ford stock also rose this month after the automaker and Alphabet (GOOGL) announced a six-year partnership to develop more connected vehicles. The partnership will put Google apps and services into future Ford and Lincoln vehicles.