Sharjah24 – Reuters: Ford Motor Co F.N said on Wednesday its electric vehicle (EV) and internal-combustion engine (ICE) units would be run as separate entities, in a move aimed at supercharging its EV business as it plays catch up with Tesla Inc TSLA.O.

Shares of Ford, which is targeting an annual production of over 2 million EVs by 2026, were up 4.7% before the bell.

The reorganization comes as Chief Executive Jim Farley bets aggressively on the company's electrification strategy, which helped Ford shares outperform those of rivals General Motors GM.N and Tesla in 2021.

Brokerage Wedbush estimates the EV market to be worth $5 trillion over the next decade, as the industry goes on an overdrive with global automakers such as General Motors GM.N and Volkswagen Group VOWG_p.DE spending billions of dollars to fight for market share with Tesla.

On Tuesday report said that although Ford was planning to run the two businesses separately, it would keep them under its corporate umbrella. Read full story

Some investors have pushed Ford and GM to spin off their EV operations as a way to better tap into the full value of those businesses.

By separating the EV business, Ford would be setting the table for a possible spinoff down the road, industry officials said.

Ford's Farley had previously said that his management team believed the automaker's EV and ICE businesses are underperforming on an earnings basis.