General Motors (GM) is the quiet leader in the electric vehicle truck space. The firm is pivoting from its success in gas-powered cars and trucks to EVs. This month, it will make and deliver its first affordable Silverado pickup truck.
Tesla (TSLA) does not have a Cybertruck on the market to respond. Rivian (RIVN) is bleeding cash. Ford Motor (F) has production output issues with Lightning. Furthermore, Ford’s EV truck is far more than the GM Silverado EV at $39,900.
The Silverado has up to 754 horsepower, 0-to-60 mph in under 4.5 seconds, towing capacity of up to 10,000 pounds. The up to 400 miles of range per charge and DC fast-charging tech differentiate GM from any other competitor in the EV market.
Risks
GM’s core business is the near-term risk. Last Friday, it recalled a million SUVs in the U.S. Federal regulators pushed it to recall the vehicle on the defective airbag inflators.
GM is unlikely to have many base model EVs available. Dealerships may charge extra fees to maximize profits. This limits the unit sales investors are expecting.
Rivian could respond by cutting prices. It may redesign an affordable version of its EV truck to compete.
