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Ford and GM shares could get a boost if they create a special ‘Class EV’ stock for their electric vehicle business

·4 min read
Ford and GM shares could get a boost if they create a special ‘Class EV’ stock for their electric vehicle business

Meanwhile, the market cap of automotive industry titans, while higher, remain relatively modest, with, for example, Ford Motor (F) at $76 billion and General Motors (GM) at $84 billion. The vast difference in multiples probably reflect longstanding investor preference for pure-play businesses over more diversified ones. Pure-plays are easier to understand, offer greater visibility into the business, and can also entice higher growth and expectations-based investing.