General Motors (GM) made a veiled challenge to Tesla (TSLA) while introducing its fully electric Chevrolet Silverado on Wednesday. The reveal followed Tuesday's news that demand had soared for Ford Motor's (F) F-150 Lightning pickup electric trucks. GM stock rose Wednesday.
XAt CES Wednesday, the Detroit automaker said that the new electric Silverado full-size pickup will target 400 miles of range. A WT (or Work Truck) version, aimed at fleet customers, will sell for $39,900 in the spring of 2023. A fully loaded RST First Edition model will debut at $105,000 in the fall of 2023. Both versions will be able to add 100 miles of range in roughly 10 minutes with a DC fast charger.
Reservations for the Silverado electric truck opened right after its unveiling.
Aiming For Spot Held By Tesla
Unveiling the electric Silverado, General Motors said it has a broader "plan to reach leadership in EV market share in the U.S." The company also announced the Equinox compact electric SUV, and also confirmed a larger Blazer electric SUV, both due in 2023. Combined, the three EVs target the largest and fastest-growing segments in the U.S., GM said.
Tesla has accounted for a majority of the EVs sold in the U.S. in recent years.
The first electric version of GM's popular Silverado truck follows GM's $80,000 electric Hummer SUV, which hit the market in December. The Silverado WT's price is well below the Hummer EV. It is competitive with crosstown rival Ford's $39,974 F-150 Lightning, with initial sales set to go to fleet customers.
GM designed the Silverado EV from the ground up as an electric vehicle. It built the truck on the company's new Ultium EV platform. The company calls the platform "a critical enabler of next-level pickup truck performance for both fleet and retail customers," according to a GM release Wednesday.
For context, Ford's F-150 Lightning claims 300 miles of range. Tesla (TSLA) is cagey about the specs for its upcoming Cybertruck. But there is speculation it could offer even longer range, up to 500 miles, and a $40,000 starting price.
Silverado: Critical To Transition
The electric Silverado is a critical vehicle to GM's transition into an all-electric automaker. Among internal combustion engine vehicles, pickup trucks are the money spinners for the U.S. auto industry. In 2021, GM sold more than half a million of its bread-and-butter ICE Silverado pickup trucks.
At Wednesday's event, General Motors' Brightdrop unit announced Walmart (WMT) as a new commercial customer for electric vans. Brightdrop is also expanding a supply arrangement with FedEx (FDX).
Among other CES highlights, GM's luxury Cadillac brand revealed the InnerSpace concept car — a two-passenger electric and autonomous vehicle.
GM Stock, EV Stocks
Shares of General Motors sank 4.6% to 62.74 on the stock market today. GM stock is back below 63.38 and 65.28 buy points. On Tuesday, General Motors topped views for Q4 auto sales and says it sees chip supplies improving.
Ford stock fell 2.7% Wednesday after hitting a fresh 20-year high. On Tuesday, shares jumped 11.7% as Ford said it will build nearly twice as many F-150 Lightning all-electric trucks per year as it projected earlier, amid hot demand. Tesla stock shed 5.35%, back below a recent buy point.
Several electric trucks are poised to hit the roads in 2022, as investors await a future of game-changing, zero-emission, battery-powered pickups. The most hotly anticipated pickup models include Ford's F-150 Lightning, due out this spring. The Tesla Cybertruck may come by early 2023 with GM's Silverado later that year. They join GM's Hummer and the Rivian (RIVN) R1T, which launched late last year.
GM says through 2025 it will invest $35 billion to roll out 30 all-new electric vehicles globally. Through 2025, Ford is investing more than $30 billion to develop and produce electric vehicles.
TSLA stock gained 48.8% in 2021. GM stock gained 40.8%. Ford rallied 173%.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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