Ford's stock is up more than 70% since Jim Farley became CEO – but he still has a ton of work to do

DETROIT – As incoming CEO of Ford Motor, Jim Farley promised much transparency to Wall Street arsenic good arsenic a wide program for the future.

At the time, Ford was considered down the manufacture erstwhile it came to all-electric and autonomous vehicles, connectivity and software. Its messaging and plans were unclear to Wall Street, causing shares to tumble.

Two years later, Farley, 60, has mostly delivered connected his promises done the company's ongoing Ford+ translation plan, but determination remains enactment to beryllium done.

He has restructured operations and mostly brought Wall Street backmost into the automaker's country for the archetypal clip since Alan Mulally – credited with redeeming the automaker from bankruptcy successful 2009 – stepped down arsenic CEO 8 years ago. Ford's banal is up astir 70% since Farley took over, contempt caller declines.

"What matters to america and the squad is delivering connected beardown concern results," said Farley told CNBC successful August 2020, erstwhile helium was announced arsenic incoming CEO. "As acold arsenic communicating to Wall Street … 1 of the astir important commitments that we're making arsenic a squad is simply a wide and circumstantial program for the institution and the company's transformation."

Both of Farley's predecessors – Jim Hackett and Mark Fields – near the automaker amid lackluster banal prices and failing to make assurance successful the automaker connected Wall Street. Under Hackett, a erstwhile CEO of furnishings institution Steelcase, Ford's banal terms declined by 40%.

But, arsenic Farley routinely says, the automaker remains successful the aboriginal innings of its Ford+ translation plan and the industry's displacement to electrical vehicles – apt representing the stock's betterment nether Farley but besides its caller autumn amid a larger marketplace decline. Ford's banal achieved decades-high prices of much than $25 a stock to statesman the year, but it's disconnected astir 56% from its highest successful January.

There stay doubts astir the outlook for the car manufacture arsenic good arsenic Ford's quality to execute connected its plans. The institution has continued to acquisition problems with conveyance launches, warranty costs and proviso chains – each things Farley vowed to fix upon becoming CEO.

"Key risks to our presumption subordinate to Ford's quality to profitably pivot to maturation areas specified arsenic EVs and AVs, the car cycle, marketplace share, and margins (both borderline unit successful a downturn and borderline enlargement longer word from institution circumstantial initiatives)," Goldman Sachs expert Mark Delaney said successful a enactment to investors past week.

Most recently, the company amazed Wall Street by pre-releasing portion of its third-quarter net report, informing investors of $1 cardinal successful unexpected supplier costs. Since then, shares of the institution are down by much than 23%, including its largest regular fall successful 11 years a time aft the announcement.

"I deliberation the biggest happening he's done is get the marketplace to judge successful Ford again. That content has possibly been enactment connected clasp present until they amusement they tin conscionable afloat twelvemonth 2022 guidance successful airy of the Q3 preannounce not being good received astatine all," Morningstar expert David Whiston told CNBC, echoing different analysts.

Whiston describes Farley as a "blunt communicator" who's "not acrophobic to instrumentality immoderate bold courses of action," specified arsenic internally separating Ford's accepted and electrical conveyance businesses; expanding investments successful electrical vehicles to $50 cardinal done 2025; and cost-cutting and headcount reductions.

"He's besides a 'car guy' which I similar due to the fact that helium has passionateness for product, which helps get vehicles similar the Mach-E arsenic opposed to a crappy (economy container battery-electric vehicle) that nary 1 wants," Whiston said, earlier adding he'd similar to spot less recalls and betterment connected warranty costs. "But I deliberation Ford is successful large hands with Farley successful charge."

Ford's banal is rated overweight with a terms people of $16.12 – astir $4 much than its existent price, according to mean estimates of analysts compiled by FactSet.

Here are the stock's champion and worst days during Farley's tenure arsenic CEO truthful far:

• Jan. 4, 2022, +11.7%: Ford announces plans to nearly treble yearly production capableness of its electrical F-150 pickup to 150,000 vehicles per twelvemonth astatine a works successful Michigan.
• Dec. 10, 2021, +9.6%: Farley tells CNBC Investing Club with Jim Cramer that the institution has closed reservations for its electrical F-150 Lightning after topping 200,000 units.
• Oct. 28, 2021, +8.7%:  Ford nearly doubles Wall Street's net expectations and somewhat beats gross projections for the 3rd quarter, starring the automaker to summation its yearly guidance for the 2nd clip past year.
• Sept. 20, 2022, -12.3%:  Ford pre-releases portion of its third-quarter net study and warns investors of $1 billion successful unexpected supplier costs.
• Feb. 4, 2022, -9.7%: Ford significantly misses Wall Street's fourth-quarter net expectations and somewhat misses connected revenue.    
• April 29, 2021, -9.4%: Ford impresses Wall Street with its first-quarter net results, but the company's lackluster guidance for the twelvemonth surprises, adjacent confuses, investors and analyst.

– CNBC's Michael Bloom contributed to this report.