Today, investors in Ford (NYSE:F) certainly have a lot to cheer. The iconic American auto manufacturer released its July U.S. vehicle sales data, which positively surprised the market. Currently, shares of Ford stock are up nearly 4% at the time of writing.
What was surprising about this sales data is both the broad strength of sales growth, as well as the mix.
Overall, Ford saw July vehicle sales surge 36.6% year over year, to 163,943. This sales growth is impressive, considering a number of competitors have seen slowing growth. However, what is even more impressive about this growth rate are the specific segments that drove it.
Overall, the company’s EV segment saw the biggest jump, surging 168.7% year over year. While the total amount of EVs Ford produced came in at only 7,669 vehicles, such a growth rate is order of magnitudes larger than other EV players, including Tesla (NASDAQ:TSLA).
Let’s dive into the importance of these numbers further.
Numbers Provide Latest Bump Higher for Ford Stock
Ford, along with other major U.S. automakers, has outlined aggressive plans to electrify its new vehicle offerings. Accordingly, while sales of vehicles with internal combustion engines made up the vast majority of Ford’s sales, it’s clear consumers are increasingly interested in the company’s EV lineup.
A growth rate of nearly 200% suggests there’s plenty of room for this trend to continue. The company’s Mustang Mach E sales, which drove much of this growth, were up nearly 75% on a year-over-year basis. As new models roll out, investors will keenly watch how this segment continues to grow.
It’s notable that Ford’s valuation is so vastly different from that of Tesla and other EV makers. However, this company’s growth rate in this segment is just as impressive (or more so). Accordingly, investors appear to be emboldened by these numbers, with many hitting the bid on Ford stock, betting that this growth can continue from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.