Ford predicts electric vehicles will make up 40 percent of global sales by end of decade

Ford said in a presentation to investors on Wednesday that it expects electric battery-powered cars to make up 40 percent of its sales worldwide by 2030.

During the presentation, the automobile company said it would be adding $8 billion to its electric vehicle production over the next four years. The Associated Press notes this would bring Ford’s overall spending on electric vehicles up to almost $20 billion.

“Today is show, not tell time, for the Ford team,” Ford CEO Jim Farley said. According to Farley, the company’s financial performance has not been acceptable in recent years, but it has made progress in the past few quarters. Ford said in its press release that it is predicting an 8 percent pretax profit in 2023.

“I’m excited about what Ford+ means for our customers, who will get new and better experiences by pairing our iconic, world-class vehicles with connected technology that constantly gets better over time,” Farley said prior to the event. “We will deliver lower costs, stronger loyalty and greater returns across all our customers.”

Currently, electric vehicles account for only 1.2 percent of Ford’s U.S. sales. The Mustang Mach-E SUV is the sole all-electric vehicle that Ford offers, but the company expects to have an all-electric F-150 pickup and a battery-powered commercial van by next spring.

The AP reports the presentation was apparently received well, with Ford shares surging by 8 percent, levels not seen in five years.

Ford also announced in the presentation that it would be creating a separate business called Ford Pro that will focus on commercial and government buyers. The company added that by 2022 it expects to have more vehicles capable of over-the-internet software updates than competitor Tesla.

The automobile company also announced the creation of Ford Ion Park, which it describes as “a global center of battery excellence comprising more than 150 experts in battery chemistries, testing, manufacturing and value-chain management who will boost battery range and lower costs to customers and Ford.”