Ford Motor ( F ) amped up its mobility strategy, announcing Thursday that it will buy two software startups as it seeks to deliver a new robo-taxi business in 2021.
[ibd-display-video id=3077390 width=50 float=left autostart=true] The No. 2 U.S. automaker said it will acquire California-based Autonomic - a tech firm in which it already owns a stake - and North Carolina-based TransLoc for undisclosed sums.
Ford plans to use Autonomic to develop a cloud platform for transportation and mobility services. Autonomic also will support Ford's new ride-sharing app Chariot. TransLoc makes software to help cities run transportation and microtransit services.
Ford also announced Autonomic CEO Sunny Madra will lead its new Ford X team, focused on "actively incubating new business models."
Shares of Ford dived 4% to close at 11.57 on the stock market today , after missing profit forecasts late Wednesday. The stock has now breached the 50-day moving average of 12.47, putting it in the loss-cutting sell zone after a failed breakout . Rival General Motors ( GM ) fell 2.3%, Tesla ( TSLA ) gave up 2.4% and Fiat Chrysler ( FCAU ) advanced 0.8% after reporting strong results early Thursday.
IBD'S TAKE : With thousands of publicly traded companies to choose from, how can you quickly find the best stocks to buy right now? A good starting point is to regularly review screens that highlight the top-rated equities .
In the near future, auto giants see themselves offering transportation services in addition to making cars. While Ford has a 2021 target to deploy self-driving cars for ride-sharing services , GM has set a similar robotaxi goal for 2019.
Ford's management has sometimes drawn criticism for offering sketchy details about its autonomous strategy, even as the emergence of new rivals from the technology sector, such as Alphabet ( GOOGL ) and its Waymo self-driving unit, raise the stakes in the autonomous race.
Late Wednesday, Ford disclosed it has lost roughly $300 million on investments in mobility services.
YOU MIGHT BE INTERESTED IN:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.