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Bill Pugliano / Getty Images
After it was left in the dust of
Tesla
in the last year, shares of
General engines
and
Ford Motor
they began to grow. Both American car icons have new electric models, 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 commercials (scorer: GM) features television and movie star Will Ferrell. In it, Ferrell goes 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 punching a globe. It’s a funny commercial.
The ad includes the all-electric Cadillac LYRIQ and the all-electric Hummer. Some versions of the Hummer EV will go on sale at the end of 2021, and LYRIQ is expected to come after launch.
The ad also features GM’s Ultium battery technology, the company’s internally developed platform designed to be used on multiple EV models. We hope that standardization can reduce EV costs and development time.
Not to be outdone, Ford (F) posted a video on Twitter showing his new fully electric Mach-E delivering pizza to Norway. Ford boasts that it already sells electric vehicles in the Nordic country, before GM.
EV investors may be wondering where Tesla (TSLA), the leader of EV and the world’s most valuable car company, is. Tesla doesn’t do a lot of traditional advertising, relying on launch events, word of mouth and the personality of founder and CEO Elon Musk. Their company saves the equivalent of billions a year, not having to sell cars like traditional car companies do.
However, everyone loves a good Super Bowl commercial. Another GM commercial pays homage to Tim Burton Edward Scissorhands. The spot features GM’s driver assistance features, which make driving easier even if the driver has hand scissors.
Ford’s presence at the big game was not as remarkable as its Detroit rival, but looking at Ford and GM taking fun photos of one is nostalgic.
All ads, including the Scissorhands ad, featured new electric vehicles. More than two decades ago, another EV – GM EV1 – made its commercial debut. The car came out around 1996 and used lead-acid batteries. Today’s EVs use lithium-ion battery technology. The EV1 range was 70 to 100 miles on a single charge, about a third of the range of modern electric vehicles.
The EV1 failed, but both Ford and GM are now investing more in electric vehicles. GM has committed to spending about $ 27 billion on electric vehicles and vehicle development between now and 2025. The plan is to launch 30 electric vehicle models so far.
Ford, in turn, plans to spend $ 20 billion on electric and autonomous vehicles in the same period.
Investors are beginning to notice. Shares of Ford and GM have risen more than 45% in the last three months, better than the comparable 11% gain in
S&P 500.
However, Tesla’s stock increased by more than 100% over the same period. Tesla is still at the forefront of the EV race with many values. But traditional carmakers, including GM and Ford, are working hard to catch up and strengthen the brand with consumers.
Write to Al Root at [email protected]