Ford Motor Co 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.

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

The reorganisation comes as chief executive Jim Farley bets aggressively on the company’s electrification strategy, which helped Ford shares outperform those of rivals General Motors 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 auto makers such as General Motors and Volkswagen Group spending billions of dollars to fight for market share with Tesla.

Reuters reported on Tuesday that although Ford was planning to run the two businesses separately, it would keep them under its corporate umbrella. 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