Ford or General Motors?
Investors may ask this question again after Ford announced on Wednesday that it would grow its EV investments to $ 30 billion and achieve 40% EV sales by 2030.
Earlier this year, GM announced that it would go fully electric by 2035. The stock has outperformed Ford so far this month, quarter, and year.
Two traders told CNBC on Wednesday that they would stick with the market leader.
“Ford’s sales are booming,” Gina Sanchez, founder and CEO of Chantico Global and chief market strategist at Lido Advisors, told CNBC’s “Trading Nation”.
Ford’s first-quarter profits and sales far exceeded Wall Street estimates, despite an ongoing chip shortage that the company said was likely to have the worst impact in the second quarter of this year.
“The announcement of the electric Ford F-150 was huge, but I think the Mustang Mach-E is also the ultimate clean muscle car,” said Sanchez. “You have to think they have a lot of momentum in this race.”
Momentum was also an issue on Ford’s stock chart, with the stock up 58% year-to-date, said Matt Maley, chief marketing strategist at Miller Tabak, in the same interview.
“Maybe General Motors can outperform slightly in the short term,” he said because Ford was temporarily overbought.
Ford stock closed nearly 9% higher on Wednesday after hitting levels not seen since 2016.
In the longer term, however, Ford is preparing for a significant upward trend, Maley said.
“There has been a nice series of higher highs and higher lows with a new higher high in the last week or so,” he said.
“Additionally, the stock has broken well above its very long-term trendline. That trendline goes back to the late 1990s, so this is really a bullish sign over the long term,” he said. “While both charts look pretty good, I think Ford is definitely the one looking better in the medium and long term.”
GM shares closed a little over 2% on Wednesday. That stock is up nearly 39% this year.
Disclaimer of liability