The view of Ford and General Motors was boosted as the electric vehicle (EV) market improved and they created plans to dominate it. The new Ford F-150 Lightning added grist to that mill. If Ford could manufacture an electric version of the county\u2019s most popular vehicle, then it and GM could expand the transition from popular petroleum-fuel models to EVs that carried a similar advantage. Tesla, dwarfed in terms of dealer networks and marketing muscle, could begin to suffer, as many car niche companies do.<\/p>\n
Tesla\u2019s leverage has come from the creation of a remarkably powerful and valuable brand. Many consumers consider Tesla the first and best electric car company. It could carry that designation for years. GM could carry its gasoline-powered legacy for as long.<\/p>\n
GM\u2019s stock prices exploded recently, jumping from around $49 last August to $67 early this year. It has slipped to $35 recently. Why such a large drop? The economy did not create it. Despite an erosion in car sales, investors have carried a particularly large optimism about the future, undermined only recently by an increase in interest rates. Car sales have been hampered by a scarcity of microchips used in the most modern vehicles. Car executives see an end to that early next year. In the meantime, they have been able to push the prices they can charge higher and eliminate profit-eroding incentives.<\/p>\n \t\t\t\t