Ford Has Big Plans for Its Electric Vehicles. Is the Stock a Buy?

Ford Motor Company's (NYSE: F) stock price jumped on Wednesday after the auto titan said it would make a more aggressive push into the electric-vehicle (EV) industry. To do so, Ford is splitting its business into two separate units.

One division will focus on accelerating Ford's push into the fast-growing EV arena, while the other tries to maximize the cash flow of its legacy auto manufacturing operations. It's a bold plan that could pay dividends for investors, but not one that's likely to meet with universal applause. As of 2:30 p.m. ET Thursday, shares were down 2.5%.

RBC Capital analyst Joseph Spak celebrated Ford's announcement. He believes that by separating its EV segment from its internal combustion engine manufacturing, the company is making it easier for investors to value Ford's business based on the sum of its parts.

Source Fool.com