GM Has Upped Its Bet That Americans Will Go Electric

But Ford is going the other way, gambling that EV demand will come late

GM says its Ultium battery will ultimately be powered by a silicon or lithium metal anode. Photo courtesy of GM

As the auto industry undergoes a technological revolution, we have watched two distinct strategies unfold in the United States. GM has positioned itself with the most aggressive developers of electric vehicles (EVs) on the planet. But, with combustion still dominating the road by far, Ford seems to have decided that, if Americans do go electric, it will be gradual and take place over decades.

Both approaches are huge risks. If GM is wrong and Americans cling to gasoline-propelled vehicles, it will have seriously wrong-footed itself and squandered at least $27 billion — a full half of its five-year capital budget through 2025, not to mention planned spending after that. If Ford has miscalculated and motorists rush to EVs, it will have left itself far behind and perhaps technologically crippled.

So far, the market seems to be favoring both approaches. Shares of both companies are up a whopping 26% this month, though GM’s were up 3.4% on yesterday’s news of an aggressive new push into EVs. GM said that, starting in 2035, it will no longer make combustion-propelled consumer vehicles, but only EVs. Among the major carmakers, only Volvo has gone this far; the Sweden-based carmaker is going…