Ford vs. GM: Why two traders prefer Ford as it doubles down on electric vehicles

Ford or General Motors?

Investors also can simply as soon as extra be asking themselves that ask after Ford’s announcement Wednesday that it plans to raise its electric vehicle investments to $30 billion and aim 40% EV gross sales by 2030.

Earlier this 365 days, GM talked about it hoped to circulation all-electric by 2035. Its stock is underperforming Ford’s to this level this month, quarter and 365 days.

Two traders told CNBC on Wednesday that they were sticking with the leader.

“Ford’s gross sales are booming,” Gina Sanchez, the founder and CEO of Chantico World and chief market strategist at Lido Advisors, told CNBC’s “Procuring and selling Nation.”

Ford’s first-quarter earnings and revenue far exceeded Wall Avenue estimates despite an ongoing chip shortage that the firm talked about would likely maintain its worst impression within the 2d quarter of this 365 days.

“The announcement of the electric Ford F-150 used to be big, nonetheless I’ve the Mustang Mach-E can be the final tremendous muscle vehicle,” Sanchez talked about. “You favor to have that they’ve bought a vogue of momentum going into this flee.”

Momentum has also been a theme in Ford’s stock chart, with the non-public up 58% 365 days to date, Matt Maley, chief market strategist at Miller Tabak, talked about within the identical interview.

“Per chance General Motors can outperform a diminutive bit of on a actually cease to-term foundation” thanks to Ford’s mercurial overbought situation, he talked about.

Ford shares closed nearly 9% elevated on Wednesday after reaching phases no longer seen since 2016.

Long flee, on the different hand, Ford is constructing for major upside, Maley talked about.

“It’s had an ideal sequence of elevated highs and elevated lows with a brand new elevated excessive effective within the previous week or so,” he talked about.

“No longer easiest that, nonetheless the stock has broken greatly above its very lengthy-term thunder line. This thunder line goes the total diagram assist to the gradual 1990s, so, here is in level of fact a bullish signal on a lengthy-term foundation,” he talked about. “Even supposing each charts scrutinize reasonably trusty, I’ve Ford is indubitably the one that appears higher on an intermediate and lengthy-term foundation.”

GM shares closed up effective over 2% on Wednesday. That stock is up nearly 39% this 365 days.