This segment originally aired on June 18, 2021.
Myles Udland looks at the auto sector, electric vehicles, and traditional automakers.
The past is outperforming the future this year
We’re less than a week out from the halfway point of 2021.
And one of the big real economy stories this year has been the explosion in demand for cars. This has pushed up prices, particularly for used cars.
And while most used cars, and those on the road today, are running on internal combustion engines (ICE), the industry agrees that electric vehicles (EVs) are the future. For the last decade, the best way to play that trend has been via Tesla (TSLA). Shareholders in that particular trade have been rewarded handsomely: since June 2011, the car maker’s shares are up over 10,000%.
This year, however, investors have been betting that the industry’s old guard can make their businesses work better in an electrified future.
Through Thursday’s close, shares of Ford (F) and General Motors (GM) were both up more than 40%, outpacing both the broader market and all of the market’s buzziest names in the EV space.