Ford, GM Race Ahead of the Market

Group 1: Market Performance - Ford Motor Co. stock is up 33% this year, while General Motors Co. is 41% higher, compared to a 16% increase in the S&P 500 [1] - Both companies were expected to struggle in the electric vehicle (EV) market, lagging behind Tesla, which holds about a 45% EV market share in the U.S. [1] Group 2: EV Market Challenges - The EV market has declined significantly, with sales as a percentage of total U.S. new car sales dropping from 8% in Q3 to 4% in Q4, and expected to remain at that level through 2026 [2] - Concerns about EVs include range anxiety, charging station availability, and performance issues in cold temperatures [4] Group 3: Legacy Business Strength - GM and Ford have invested billions in EV development but have found their traditional gasoline-powered vehicles, particularly full-sized pickups, to be very profitable [3] - The average price of gasoline has dropped to $3 per gallon, reducing the cost advantage of EVs that was more pronounced when gas prices were higher [5] Group 4: Consumer Preferences - There are approximately 175,000 gas stations in the U.S., making refueling quicker and more convenient than charging EVs [6] - Negative sentiment towards Tesla CEO Elon Musk has influenced some consumers to prefer traditional combustion engine vehicles over EVs [6]