Ford Motor Company (F) is buying Electriphi, a California-based provider of charging management and fleet monitoring software, to simplify the transition to electric vehicle fleets while saving time and costs for customers.
Electriphi will be combined with Ford Pro, Ford’s new business unit delivering Best-In-Class Commercial Products, Telematics, and Vehicles.
Ford believes this combination with Electriphi will boost the adoption of its EV fleet of vehicles like the F-150 Lightning Pro and the E-Transit van.
The acquisition is expected to close in June. Terms of the deal remain undisclosed.
According to Ford Pro, the depot charging industry is expected to grow to over 600,000 full-size trucks and vans by 2030.
With the transition towards electrification gaining pace in the commercial vehicle segment, Ford Pro aims to capture over $1 billion in revenue from charging by 2030. (See Ford stock chart on TipRanks)
Ford Pro CEO Ted Cannis said, “With Electriphi’s existing advanced technology IP in the Ford Pro electric vehicles and services portfolio, we will enhance the experience for commercial customers and be a single source solution for fleet-depot charging.”
From charging installation to operation, Electriphi’s charging platform will give customers a complete end-to-end solution, including employee home charging, public charging, and e-telematics solutions.
Cannis added, “Bringing Electriphi on board is the last component to complete Ford Pro’s strategy to establish a commanding leadership position in the software space and build out our full-service stack to create an always-on relationship with the commercial customer.”
Having an overall bullish outlook for the EV sector supported by the favorable regulations under the Biden administration, BofA Securities analyst John Murphy recently reiterated a Buy rating on the stock with a price target of $17, which implies 15.1% upside potential to current levels.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 9 Buys, 6 Holds, and 1 Sell. The Ford average analyst price target of $15.13 implies 2.4% upside potential to current levels. Shares have gained 65% over the past six months.
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