Competition Surges in the Electric Pickup Truck Market
The pickup truck is as American as apple pie. In 2019, more than 3.1 million were sold in the U.S.
The 2020 leader in light-duty pickup sales is Ford Motor Company‘s (NYSE: F) F-Series. This will likely be its 43rd year as the country’s favorite truck.
But that could all be about to change…
The race is on to grab shares in the all-electric, light-duty pickup truck segment of electric vehicles.
Hummer Brings the Heat
Almost a year ago, Tesla (Nasdaq: TSLA) announced its all-electric Cybertruck. According to Elon Musk, Tesla has received more than 200,000 Cybertruck reservations.
But now other U.S. car companies are starting to rev up hype for their all-electric pickups.
One of the most impressive competitors so far is the all-electric Hummer by GMC.
I’ve owned pickup trucks for more than 44 years. And I have to say, electric or otherwise, the Hummer EV is in a class by itself.
The Hummer EV Edition 1 boasts some pretty remarkable specs, such as 1,000 horsepower, three motors, the ability to go from zero to 60 mph in about three seconds, autonomous driving and passing, and more.
This truck can also do things no other truck can do. For one, it has four-wheel steering.
That gives the truck a tight turning radius. But it also allows the truck to move diagonally (GMC calls it the “CrabWalk”) in tight, off-road situations.
Additionally, the driver can raise the height of the vehicle as much as 6 inches. This gives it a foot or more of ground clearance.
Within an hour of opening reservations, GMC said it had reached its quota. But the company did not state what that was.
It expects deliveries of the Edition 1 to start in fall 2021. But you’d better get your wallet out.
Prices start at $112,595. That’s expensive for a truck.
Still, the GMC Hummer looks like it will be some serious competition for the Tesla Cybertruck.
Competition Picks Up
Besides GMC, other manufacturers are preparing electric pickup truck models.
Ford is spending about $700 million retooling its historic Ford River Rouge Complex in Dearborn, Michigan, to make electric variants of its F-Series pickups. Deliveries of the all-electric F-150 are scheduled to start in mid-2022.
The all-electric F-150 has some interesting capabilities, including 120-volt AC power. This will allow owners to use electrical equipment and lights at remote job sites or campsites. No other electric truck currently provides AC power capability.
Ford hasn’t released the cost, but starting prices are expected to be far more affordable than the Hummer’s, in the $55,000 range.
This past June, Lordstown Motors Corp. (Nasdaq: RIDE), an Ohio-based manufacturer, introduced its all-electric pickup, the Endurance. Lordstown went public just last month. At 250 miles, the Endurance’s range is a little on the low side compared with its competition. And its towing capacity is listed at 6,800 pounds, about half of what competitors are offering. Prices start at $52,500.
Next up, Fisker Automotive has plans to release four EV models by 2025, including a “lifestyle” pickup truck.
The company plans to go public in the fourth quarter via a merger with Spartan Energy Acquisition Corp. (NYSE: SPAQ), a special purpose acquisition corporation.
Lastly, Nikola Corporation (Nasdaq: NKLA) announced a strategic partnership with General Motors this past September. It gives GMC an 11% ownership stake in Nikola.
The stake is worth $2 billion. GMC’s role in the partnership is to produce Nikola’s Badger pickup truck.
There are two versions of the Badger truck. One is a battery EV and the other a fuel cell EV.
The maximum range is 600 miles, more than any other announced pickup. That’s achieved by combining its hydrogen fuel cell and battery power sources.
The Badger can hit 60 mph in about 2.9 seconds, and its towing capacity is 8,000 pounds.
Production is set to start in late 2022. Prices start at $60,000 for the battery-only version and $80,000 for the fuel cell model.
As you can see, investors – and consumers – have plenty of companies to choose from, with more lining up.
This is one EV segment worth paying attention to and investing in early.