Ford Motor Company (NYSE:F) revealed on Monday that it plans to more than double its investment in electric vehicles to US$11bn in the next five years.
Chairman Bill Ford said the company would have 40 hybrid and fully electric vehicles in its range by 2022 as it responds to growing pressure on carmakers from more countries across the world to reduce carbon emissions.
READ: Ford's third quarter profit, revenue beat market estimates driven by strong sales of F-series pick-ups
Rivals Toyota, Volkswagen and General Motors have also revealed plans to roll out more electric vehicles.
Ford will focus on electrifying its existing models, though it did not name any specific cars. It will offer 16 fully electric vehicles by 2022 and 24 plug-in hybrids.
"We're all in on this and we're taking our mainstream vehicles, our most iconic vehicles, and we're electrifying them,” Ford told reporters at the Detroit Auto Show on Sunday.
"If we want to be successful with electrification, we have to do it with vehicles that are already popular."
Tesla faces growing competition
With more automakers investing in electric vehicles, major player Tesla Inc (NASDAQ:TSLA) is at risk of being overtaken by competition, particularly for its mass market Model 3.
Tesla has pushed back its target of making 5,000 of the Model 3 each week after hitting a series of snags including delayed parts due to late design changes and a halt to production lines for quality inspections.
The slower-than-expected Model 3 production rate has fuelled worries about Tesla's cash flow and capital expenditures.
In pre-market trading on Tuesday, Ford Motor shares were up 0.2% at US$13.25, while Tesla shares were up 0.5% at US$337.99.
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