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Showing Original Post only (View all)The Tesla Truck Is Coming Today. Here's What That Means for Ford and GM Stock [View all]
The Tesla cyberpunk pickup truck is coming. That much is obvious to investors following the space. Teslas reveal eventhappening Thursday evening in Los Angelesis a big deal for car people. Whats not obvious is what the truck will look like or how it will perform.
That isnt all thats opaque. The impact of Teslas truck ambitions on existing U.S. truck giants Ford Motor and General Motors is also difficult to call.
Citi data suggests Ford has more headline risk than GM, Citigroup analyst Itay Michaeli wrote in a Thursday research report. If Teslas pickup impresses, Ford is competitively more exposed to share-loss risk than GM, with materially higher [earnings] exposure.
That makes sense. Ford (ticker: F) is a bigger truck maker than General Motors (GM) and a large portion of its profits come from trucks. But Michaeli goes deeper in his research note. Ford sells more trucks with selling prices greater than $60,000. The Tesla (TSLA) truck will likely be positioned for the higher end of truck buyers based on its existing models and the high cost of batteries powering electric vehicles.
https://www.barrons.com/articles/tesla-truck-reveal-today-ford-gm-stock-51574345280