Shares of Ford Motor jumped by greater than 5% throughout buying and selling Friday morning following a report that CEO Jim Farley is weighing whether or not to separate its electrical automobile enterprise from the automaker’s conventional engine operations.

Farley desires to separate Ford’s electrical operations from its internal-combustion engine enterprise and has thought-about spinning off one or the opposite, Bloomberg Information reported, citing individuals aware of the efforts.

Shares of Ford have been up by as a lot as 5.4%, to $18.48, Friday, earlier than leveling off throughout afternoon buying and selling to shut at $18.04 a share, up by 2.9%.

Ford has no plans to spin off its electrical automobile enterprise or its conventional ICE enterprise, the corporate stated in an emailed assertion.

The report comes weeks after Bloomberg reported the corporate had evaluated spinning off a small portion of its EV enterprise as part of a reorganization in an effort to seize worth that buyers have been awarding some EV startups.

A derivative of any of the operations could be in sharp distinction to Ford’s largest U.S.-based rival, Basic Motors. GM executives have stated the automaker has no plans presently to spin off its electrical automobile enterprise regardless of strain from Wall Avenue to take action.

In November 2020, GM President Mark Reuss stated the corporate analyzed the potential of a derivative and decided it could not be the suitable factor for its enterprise, citing prices in addition to advantages of getting the EV operations stay a part of the bigger firm.