General Motors has taken more than 65,000 reservations for its electric Hummer pickup and SUV, according to published reports.
That number — higher than the automaker’s expectations — means the SUV version of the Hummer isn’t scheduled to arrive until 2023, and new pickup orders won’t be fulfilled until 2024.
Electrek reports that we learned after GM’s fourth-quarter earnings call that although it was widely thought the first deliveries of the Hummer EV pickup began arriving for reservation holders in late December, GM actually only delivered one electric Hummer last year.
Worth noting: GM said in January it would expand its EV offerings with an all-electric Chevrolet Silverado Pickup. The work truck version of the Silverado is expected to arrive in the spring of next year, and other models should be ready in late 2023. Maybe.
GM Finds an Original Way to Avoid a Shortage of Its Cars
Car manufacturers have been confronted for a little over two years now with disruptions and supply-chain headaches, and they are no longer sure if they will be able to manage and master it anytime soon.
This problem, which is becoming difficult to solve, was caused by the Covid-19 pandemic and has just been exacerbated by the Russian invasion of Ukraine.
Specifically, the restrictive measures taken by governments, particularly in Asia and Central Europe, from which many raw materials necessary for the production of vehicles are extracted. These measures have forced car manufacturers to temporarily close their factories for lack of elements and parts needed to assemble their cars.
Unlike its rivals, GM has decided not to close its Chinese factories. Production is therefore not going to stop. To do this, the group led by Mary Barra has found an ingenious way which is likely to be copied by other companies in areas where there are lockdowns.
Employees working in factories owned by the GM-SAIC joint venture have been asked to sleep on site, a source familiar with the matter told TheStreet who requested anonymity.
GM has also requested exceptional passes for the company’s trucks to continue delivering the vehicles. These measures are called “closed-loop” management, the source said.
Closed-loop operation means that all the workers stay in the plant all the time. Employees live, work and sleep in isolation from the rest of the world and especially from their families to prevent the spread of the virus.
Production in the SGM plant in Shanghai continues with the appropriate health measures in place (closed-loop requirement), the source added.
Here are more of the top electric vehicle stocks to watch this week:
Tesla (TSLA) – Get Tesla Inc Report said it will ask shareholders to vote on a proposal that would enable the group to execute a stock split. Tesla said it will seek approval to authorize additional shares, with plans to have a shareholder vote at the group’s next annual general meeting on a stock split. Tesla executed a five-for-1 stock split in the summer of 2020, when shares in the group were trading north of $2,000 each, as it prepared for inclusion in the S&P 500 benchmark later that same year.
Tesla’s desire to pursue a stock split doesn’t change the fact that its stock is still trading at a valuation completely disconnected from fundamentals,” said David Trainer, CEO of New Constructs, an investment research firm based in Nashville, who has advised his clients to sell into the stock’s recent strength. “A Tesla stock split would dramatically reduce the price of Tesla’s stock, which would make it even more attractive to unsuspecting retail investors,” he added. “This could further fuel the bubble in Tesla’s stock that has been brewing over the past two years.”
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In the race for electric vehicles, Tesla has a considerable lead over its rivals. To fill this gap — which is far from being insurmountable — the legacy carmakers rely in particular on their tact and their experience in mass production and production rate management. Young and new car manufacturers play on quality, design and technological innovation. These assets allow them to assemble forces capable of challenging Tesla’s dominance.
While waiting to produce and sell as many vehicles as the owner of the Model S sedan and the Model X luxury SUV, rivals are already vying for the awards. This is the case of Lucid Group (LCID) – Get Lucid Group, Inc. Report, which counts among its shareholders Saudi Arabia’s sovereign wealth fund (PIF, Public Investment Fund.)
The young Californian manufacturer has just snatched from Tesla a prize which crowns the luxury electric vehicle of the year for 2022. The specialized website Cars.com has just dedicated the Lucid Air Dream sedan as the must-have luxury electric car. This limited production model is completely sold out. If you wish, you must register on a waiting list. Besides the Lucid Air Dream, Lucid also produces other variants of the Air. These include the Air Pure, the entry-level configuration sold at a base price of $77,400, the Air Touring ($95,000) and the Air Grand Touring ($139,000).
Price, range, comfort and features of 30-plus EV models on sale in the first quarter of 2022 are the criteria examined by the experts at Cars.com to determine the winner.
Electric truck maker Nikola Corp. (NKLA) – Get Nikola Corporation Report said the production of its flagship Tre BEV vehicles kicked off this past week in Arizona. The company said it expects to deliver up to 500 of its Tre BEV trucks by the end of the year, alongside revenues of between $90 million and $150 million, said in a Securities and Exchange Commission filing. North American production began on March 21 and Nikola expects to begin making trucks for the European market from its German manufacturing base in June of next year, based on presentations at its investor day event in Phoenix.
Nikola reached an agreement last year with Germany’s Bosch to build Bosch-designed fuel-cell power modules at its facility in Coolidge, Arizona, that will be used in the Tre Bev and US Nikola Two fuel-cell applications. The companies said the fuel cells are expected to launch in 2023 and could give the Class 8 regional-haul Nikola Tre FCEV a range of around 500 miles.
The automotive space was hit hard during the latest pullback, but the stock performances differed sharply. EV leader Tesla held up pretty well, as did traditional automakers like Ford (F) – Get Ford Motor Company Report and General Motors. Others, like Lucid Motors and Nio (NIO) – Get NIO Inc. (China) Report, have slumped. From its high more than a year ago to the recent low, Nio stock tumbled more than 80%. And even after Nio’s bounce from last week’s low — up about 65% in that stretch — the shares remain off 68% from the highs.
With Nio set to report earnings after the closing bell on Thursday, the bulls hope that the results will enable a larger relief rally. “Clearly volatility has been sharp here. Now the question is: Can the earnings report help out Nio stock, or will supply-chain issues disrupt the company’s business to the point that investors are disappointed?” writes TheStreet’s Bret Kenwell.
Ford is transitioning to electrification like other legacy vehicle makers. To gain market share quickly in this competitive sector, the group led by CEO Jim Farley is developing electric versions of its legendary models and also electric versions of its bestsellers. This is the case of the F-150 pickup, one of the best-selling vehicles in North America since its launch. Its electric version, the F-150 Lightning is eagerly awaited in the coming months.
Ford has recently confirmed that the first deliveries scheduled from spring are on schedule. Basically, there will be no delays as consumers who have placed an order might have feared due to the continued disruption of supply chains, shortage of chips, and soaring prices of raw materials.