GM, Ford Become World's Greatest Car Companies

"No one can tell from their stock prices that Ford Motor Co. ( NYSE: F) and General Motors Co. ( NYSE: GM) have almost completely wasted the tens of billions of dollars each has put into electric vehicles (EVs). There is even a rumor that Ford will kill its EV flagship, the F-150 Lightning. The stock market favors manufacturers that produce and sell gasoline-powered cars. In parts of the world, especially outside China, it will remain a great business for years, if not decades."

"If the stock market is, indeed, a gamble on the futures of the economy and individual companies, consider that Ford and GM each trade at extraordinary levels. GM is at its all-time high. Ford is very near its 52-week high. For some reason, it experienced an unprecedented surge in late 2021. Otherwise, Ford's stock is also near an all-time high."

Ford and General Motors invested tens of billions into electric vehicles and have achieved only limited EV market success, risking models such as the F-150 Lightning. Stock prices remain high because both companies retain strong gasoline-vehicle businesses and leadership in the U.S. market, with factory networks and extensive dealership networks providing direct consumer access. Neither company is a major player in China or the European Union, where domestic and European brands dominate and Chinese competition has triggered a fierce EV market share war. Market share in the U.S. favors GM, Toyota, and Ford, preserving their revenue despite EV setbacks.

Read at 24/7 Wall St.