Touted as the world’s first electric “super truck”, GM’s highly anticipated electric Hummer made it’s world premier tonight with a flashy reveal video. Among it’s killer features skillfully demonstrated in the video, a crab walk mode that allows the EV to drive diagonally as well as a 6″ suspension lift. The super in the supertruck claim is backed up with 1,000 hp and a claimed 0-60 in 3 seconds for a respectable range of 350 miles.
$GM has been on a surge lately perhaps in anticipation of the reveal. The growth has been consistent however. Since it’s mid-March low of $16.80, it’s more than doubled in price, up over 6% the day of the reveal and over 2% after hours. Is now the time to jump on GM stock?
First, let’s grade the Hummer. For sheer looks, we give it an A. Yes, it’s a revision to a familiar truck silhouette but in contrast to the Cybertruck, this is not going to be controversial. Made in Detroit with the famous Hummer nameplate loaded with all the bells and whistles, this “beast” will sell. The open top is one feature the Cybertruck can’t match.
Upon closer inspection however, you begin to admire Tesla. For 350 miles, you can either spend over $100K or half that with a Cybertruck. For $75K, you could get 500 miles of range. Also, the $80K promised for the Hummer EV is not until 2024. 2024!
We understand why it’s being positioned as a “supertruck”. It was the right call to position it as a luxury vehicle. It will do well in it’s segment, but Tesla’s head start in battery technology shows. Why would a “supertruck” only go 350 miles in 2024?
GM deserves credit for placing a huge bet on the future with the Hummer EV. In fact, they’re planning to spend $20 billion dollars on electrification and autonomous driving.
Unlike Ford’s Bronco, they chose not to start with a gas version. The Hummer EV was a $2 billion dollar leap into the future. It’s a bold vision and likely fueling their stock price. Having already doubled in price, you may want to wait until excitement cools to take a position. Most importantly, the Hummer makes us realize what a head start Tesla has on everyone else in terms of battery technology. The yet to revealed Rivian R1T is expected to offer 400 miles in range.