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Summary
- GM expects first-half results to be significantly better than its previous estimate.
- Ford, which saw record electric vehicle sales in May, plans to unveil a new pickup.
Stocks of General Motors Company (NYSE:GM) gained more than 6 percent on Thursday as the company lifted its first-half outlook, while and Ford Motor Company (NYSE:F) rose over 7 percent on sales growth in May.
GM Expects H1 Results To Be “Significantly Better”
GM on Thursday said it anticipates the first-half results to be “significantly better” than its previous expectation. In May, the company estimated its adjusted EBIT be around US$5.5 billion despite the expected production downtime in the second quarter.
The automaker attributed the improved outlook to maximizing chips utilization and the "pull-ahead" of semiconductor deliveries into the second quarter.
In addition, GM said it is increasing the deliveries in North America despite the semiconductor chip shortage. GM will boost the monthly production of its cars and pickup trucks by about 1,000 units from mid-July. It will also raise the shipments of its mid-size pickups from its Missouri facility by about 30,000 units from July 5.
GM noted that the company is optimistic about the full-year results. The company has forecasted its adjusted EBIT to be at the higher end of US$10 billion to US$11 billion in 2021.
Source: Pixabay
Also Read: 2 EV Stocks To Explore: Nio, Xpeng
Ford Posts Record EV Sales In May
The Detroit-based company’s stock rallied to its 52-week high on Thursday after the company report 4.1 percent year-over-year growth in its total sales in May and announced a new pickup.
Ford sold 161,725 vehicles in the U.S. during the month. SUV sales totaled 80,134 units, while truck and car sales came in at 75,665 and 5,926 units, respectively.
Electric vehicle sales surged 184 percent to a record of 10,364 vehicles. Lincoln brand sold 8,143 vehicles, up 5 percent.
Meanwhile, the automaker said it will expand its pickup segment with a new compact pickup called Maverick, which will be unveiled on June 8.
Ford recently unveiled its new F-150 Lightning electric pickup truck that will be launched in the spring of 2022.
Ford has set a US$30 billion investment target for electrification by 2025. The company plans to convert 40 percent of its vehicles fully electric by 2030.
Ford has set up its US battery joint venture BlueOvalSK in collaboration with South Korea’s SK Innovation. The venture will produce battery cells and EV components.
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Stock Performance
Ford has a market capitalization of US$63.82 billion. The stock rallied over 81 percent year to date and grew 159 percent in the last one-year period. The stock has a 52-week range of US$5.74 to US$16.06.
Ford’s stock closed on Thursday at US$15.99, up 7.24 percent.
General Motors has a market capitalization of US$92.06 billion. Its stock gained more than 50 percent this year and rallied 119 percent in the last one year.
General Motors shares ended trading on Thursday at US$63.46, up 6.39 percent.
