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After being left in the dust by
Tesla
over the past year, shares of
General engines
and
Ford Motor
have started to rise. Both American auto icons have new electric models on the way, and GM is promoting its new models in Super Bowl commercials. For GM and Ford it feels like the old days.
One of General Motors’ Super Bowl commercial (ticker: GM) features TV and movie star Will Ferrell. In it, Ferrell rages out against Norway and its success in boosting sales of electric vehicles in the country. “Did you know that Norway sells more electric cars than the US?” Ferrell asks just before sticking his fist through a globe. It’s a funny commercial.
The commercial features the all-electric Cadillac LYRIQ and the all-electric Hummer. Some versions of the Hummer EV will go on sale in late 2021, and the LYRIQ is expected to be released after that launch.
The ad also features GM’s Ultium battery technology, the company’s in-house developed platform designed for use on multiple EV models. The standardization can, hopefully, reduce EV costs and development time.
Not to be outdone, Ford (F) posted a video to Twitter showing his new all-electric Mach-E delivering pizza in Norway. Ford claims it already sells electric cars in the Nordic country, ahead of GM.
EV investors may wonder where Tesla (TSLA) is, the EV leader and the world’s most valuable automotive company. Tesla doesn’t do much in traditional advertising, relying on launch events, word of mouth, and the personality of founder and CEO Elon Musk. The company saves the equivalent of billions annually by not having to sell cars like traditional car companies.
Still, everyone loves a good Super Bowl commercial. Another GM commercial pays homage to the Tim Burton movie Edward Scissorhands. The spot is equipped with GM’s driver assistance systems, which makes driving easy, even if the driver has scissors for hands.
Ford’s presence at the big game wasn’t as remarkable as its Detroit rival, but watching Ford and GM take funny photos feels nostalgic.
All commercials, including the Scissorhands ad, feature new EVs. More than two decades ago, another EV – the GM EV1 – made its commercial debut. That car came out around 1996 and used lead-acid batteries. Modern electric vehicles use lithium-ion battery technology. The EV1’s range was 70 to 160 miles on a single charge, about a third of the range of modern electric vehicles.
The EV1 didn’t make it, but both Ford and GM are now investing more heavily in electric vehicles. GM has pledged to spend approximately $ 27 billion on the development of electric vehicles and autonomous vehicles between now and 2025. The plan is to launch 30 EV models between now and then.
Ford, for its part, plans to spend $ 20 billion on electric vehicles and autonomous vehicles over the same period.
Investors are starting to notice. Ford and GM shares are both up more than 45% in the past three months, better than the comparable gain of 11% of the
S&P 500.
However, Tesla shares are up more than 100% over the same period. Tesla is still leading the EV race based on many statistics. But traditional automakers, including GM and Ford, are working hard to catch up and build consumer brand awareness.
Write to Al Root at [email protected]