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New electric vehicle models are arriving in the U.S. en masse in 2022. And EV demand looks solid. That is good news for companies such as
General Motors
,
which wants to compete with the likes of EV leader
Tesla
for electric market share. Strong demand is good news for GM shareholders, too.
CNBC reported Tuesday that GM (ticker: GM) plans to increase production of its new all-electric GMC Hummer as reservations top 65,000. GM says the reservation figure applies to both the the pickup and SUV models of the new Hummer.
The company won’t likely make all 65,000 in 2022, or even 2023. The first version of the Hummer electric truck is a high end EV, with a price starting north of $100,000. The market for vehicles that expensive is relatively small.
Tesla
(TSLA), for instance, delivered roughly 25,000 of its pricier Model S and Model X vehicles in 2021.
Lucid
(LCID) plans to deliver about 13,000 of its luxury Air sedan in 2022.
Reservations slots for the first edition of the Hummer truck and SUV are full. GM is still taking reservations for lower priced versions which can start around $80,000.
Even if it takes a few years to deliver the backlog, rising reservations is always a good thing. GM stock closed up 4.6% in Tuesday trading. The
S&P 500
and
Dow Jones Industrial Average
added 1.2% and 1%, respectively.
GM shareholders could use the positive price action. GM stock is still down about 21% year to date and 31% from its January 52-week high of more than $67 a share. Persistent supply-chain problems, such as a shortage of semiconductors, and rising costs have dented investor sentiment.
The bulk of the newest Hummer EVs arrive in 2022. So does the
Ford Motor
(F) F-150 Lightning and
Toyota Motor
(TM) bZ4X, to name two others. That trio joins the
Rivian Automotive
(RIVN) R1T along with the Ford Mach E.
Overall, the number of EV models should more than double form the roughly 10 models U.S. car buyers could choose from in 2021. More models is a reason the industry projects U.S. all-electric sales could double in 2022, rising from roughly half a million in 2021.
Write to Al Root at allen.root@dowjones.com
Read More: People Want the Electric GMC Hummer. GM Stock Jumps.