Checking in on EV Makers
Ford’s $11.5 Billion Plan to Invest in EVs
Ford (F) is scheduled to unveil an all-electric version of its Transit van tomorrow. The automaker is investing $100 million to produce the new Transit van at a plant in Missouri. This will create 150 new jobs at the plant.
The initiative is part of Ford’s plan to spend over $11.5 billion on electric vehicles through 2022. Ford is devoting $3.2 billion to building new all-electric vehicles like the Transit van, which will be available for purchase in late 2021, as well as an all-electric F-150 pickup which will debut in mid-2022. Next month, it is expected that Ford’s long-awaited Mustang Mach-E, a new electric crossover vehicle, will go on sale. The new model will compete with Tesla’s Model Y.
GM Hires 3,000 Workers to Grow EV Operations
Not to be outdone, General Motors (GM) is in the process of hiring 3,000 engineers and software developers in order to stay relevant in a changing automobile market. As consumers become more excited about EVs and vehicles that depend on computers, legacy carmakers are hiring more tech workers to stay competitive with companies like Tesla (TSLA) and smaller startups.
For decades, GM’s product development operations have been centered around the company’s headquarters in Detroit. Now, GM is incorporating more remote workers into its structure than ever before in order to bring in talent from outside of Detroit. GM says its hiring spree has already started and will continue through the first quarter of 2021.
Nikola’s Legal Battles
Legacy automakers are keeping a close watch on new companies specializing in electric vehicles. Recently, established auto companies, especially those specializing in trucks, saw Nikola (NKLA) as a threat. However, the EV truck maker which was once a Wall Street darling has been faced with allegations of fraud.
In September, the Department of Justice issued grand jury subpoenas to Nikola, as well as to Trevor Milton, the company’s founder. The New York County District Attorney’s Office also gave Nikola a grand jury subpoena. The electric truck maker shared that these subpoenas had been issued in a regulatory filing on Monday. Nikola has been accused of making false claims about its technology so it could grow and form partnerships with large auto companies like GM. Nikola has denied these allegations. Regardless of how the cases turn out, Nikola’s reputation has taken a hit.
Companies old and new, large and small are jockeying for position in a growing and changing EV market. Investors will be eager to see which companies come out ahead.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.