General Motors Co (NYSE:GM) is set to report earnings after Tuesday's market close. As an owner of the stock, Ritholtz Wealth Management's Josh Brown is more focused on the longer-term story.
"I really feel like this story entirely hinges upon whether or not they can actually deliver the Silverado EV," Brown said Tuesday on CNBC's "Fast Money Halftime Report."
Ford Motor Co's (NYSE:F) F-150 Lightning and Chevy's electric Silverado "might be one of the biggest stories in the history of automotive rollouts," according to Brown.
He expects both companies to face a myriad of challenges as they transition to becoming electric vehicle manufacturers. The legacy automakers will have to decide whether or not to build their own batteries and if they should maintain their dealer networks or try to sell vehicles directly to consumers like Tesla Inc (NASDAQ:TSLA), Brown emphasized.
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He noted that GM seems to be more focused on spending than its competitors, but cautioned that investors won't know how the Silverado is being received by the market until the fall of 2023. Still, he plans to continue to hold shares of GM as the electrification story plays out.
"I think the next two years will be an absolutely transformative moment and I think GM, in particular, has a lot going for it," Brown said. "I'm an investor here, not a trader. I'm up in this stock and I'm staying with it. I think they're going to win."
GM Price Action: General Motors has traded as low as $47.07 and as high as $67.21 over a 52-week period.
The stock closed at $54.07 on Tuesday, up 2.54%.
Photo: courtesy of GM.
