Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Ford, GM shares jump as electric truck battle heats up

Published 01/04/2022, 06:11 AM
Updated 01/04/2022, 03:55 PM
© Reuters. FILE PHOTO: The Ford F-150 Lightning pickup truck is seen during a press event in New York City, U.S., May 26, 2021.  REUTERS/Brendan McDermid
GM
-
F
-
TM
-
TSLA
-
NIO
-

By Noel Randewich and Paul Lienert

DETROIT (Reuters) - Shares of Ford Motor (NYSE:F) and General Motors (NYSE:GM) surged on Tuesday, lifted by investors' growing enthusiasm about their future electric pickup offerings.

Ford's stock jumped more than 11% to its highest level since 2001 after the Detroit automaker said it will nearly double production capacity for its red-hot F-150 Lightning electric pickup to 150,000 vehicles. It said the model has already attracted nearly 200,000 reservations ahead of its arrival this spring at U.S. dealers.

GM rallied 7.3% a day ahead of its public debut of the Chevrolet Silverado electric pickup, which is slated to go on sale in early 2023. GM CEO Mary Barra is set to unveil the Silverado EV at the Consumer Electronics Show in Las Vegas. Tesla (NASDAQ:TSLA)'s announcement on Sunday that it delivered 308,600 vehicles in the fourth quarter, crushing analysts' forecasts of 263,026, also heightened excitement about electric vehicles, one of the hottest investment themes on Wall Street. Tesla shares climbed more than 13% on Monday, but gave back 4.4% on Tuesday.

Ford has now gained nearly 17% over two days, a strong start to the year after surging 136% in 2021. GM has climbed 12% over two sessions, adding to its 41% gain last year.

Not all of Wall Street's EV makers got a lift on Tuesday. Rivian dipped 0.8%, leaving its gain since its initial public offering in November at 31%. Lucid Group lost 4%, while Nio (NYSE:NIO) dipped 5%.

© Reuters. FILE PHOTO: The Ford F-150 Lightning pickup truck is seen during a press event in New York City, U.S., May 26, 2021.  REUTERS/Brendan McDermid

The rally in GM shares came even after Japanese automaker Toyota Motor (NYSE:TM) Corp released data showing it outsold GM in the United States in 2021, marking the first time the Detroit automaker has not led U.S. auto sales for a full year since 1931.

Ford CEO Jim Farley in early December told CNBC host Jim Cramer that Ford had to stop taking reservations for the Lightning.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.