General Motors (NYSE:GM) CEO Mary Barra recently confirmed that the company would produce an all-electric pickup truck to compete with Tesla (NASDAQ:TSLA) and Rivian. While the company’s been short on details, the announcement does make GM stock a little more attractive to investors looking to make a safer bet on electric vehicles.

Here’s a big reason why.

The Sedan and GM Stock

Pickup trucks and SUVs are all consumers are buying these days. Sedans made by the big three have gone the way of the dodo bird. In 2018, Bloomberg’s Joe Nocera reported that 70% of the top-selling vehicles in America were either SUVs or pickup trucks, a surprising stat considering that in 2013, sedans accounted for 50% of the total sales in the U.S. Now, it’s down to about 33%.

To make matters worse, most of those losses have come at the hands of Detroit’s Big Three.

“The Toyota Camry and Corolla sold a combined 700,000 cars in 2017. Ditto the Honda Civic and Accord. And the Nissan Altima and Sentra came in at around 475,000 last year,” Nocera wrote Nov. 30. “If you look at the historical sales figures of the top Japanese sedans, you’ll see a small decline in recent years, but nothing like the big drop-off in sales that has hammered the American companies.”

It’s gotten so bad that Barra and Ford (NYSE:F) CEO Jim Hackett have both decided to exit the sedan business in favor of high-margin pickups and SUVs.

One person that would dispute sedans are dead is Elon Musk.

His company’s Model 3 is selling like hotcakes here in America and pretty much everywhere else where it’s available. In 2018, the Model 3 was the number one selling electric vehicle in the world. The second-best selling electric vehicle sold 33% fewer vehicles.

Tesla might be hemorrhaging cash, but it knows a thing or two about what the car-buying public is looking for in a vehicle. That’s why it’s bringing out a supercharged pickup that will put the Ford F-150 and Dodge RAM to shame.

According to Teslarati, Tesla’s electric truck will have dual motors, a towing capacity of 300,000 pounds, and room for six people. Oh, and let’s not forget, it will be fully electric.

The competition for the pickup buyer is intense.

Add to this a real push for governments everywhere to electrify all of the vehicles on their roads, and it’s no wonder Ford’s invested $500 million in Rivian, the Michigan electric vehicle manufacturer whose R1T truck was such a hit at the recent New York Auto Show.  

It’s no wonder that GM has jumped into the dispute. To fail to do so would be corporate suicide.

Too bad Nio (NYSE:NIO) is doing much worse than Tesla because it could use a pickup truck to sell over here in North America.

Mary Barra’s Plan and GM Stock

GM announced its Q1 2019 earnings April 29 and they were mediocre.

Thanks to $400 million in savings from its ongoing restructuring and pricey versions of its GMC Sierra and Chevy Silverado pickups, GM was able to deliver adjusted earnings per share of $1.41, better than analyst expectations, but 1.4% lower year over year

However, its North American market share shrunk by 130 basis points in the first quarter to 15.6% from 16.9% in the fourth quarter of 2018, a sign it might be capturing the consumer’s interest.

Barra defiantly stated during its conference call with analysts that it’s full steam ahead for GM when it comes to trucks and electrification.

“GM has an industry-leading truck franchise and industry-leading electrification capabilities,” Barra said. “I assure you we will not cede our leadership on either front. We intend to create an all-electric future that includes a complete range of EVs, including full-size pickups.”

Barra, the CEO, has been spending too much time massaging the financial numbers, and not enough time using her engineering chops to drive the GM agenda.

With Ford’s investment in Rivian, it’s time she put some meat on the bone regarding its electric vehicles, or it’s going to get left behind.

The Bottom Line on GM Stock

There is no doubt that GM is a safer bet than both Tesla and Nio. That’s a no-brainer. However, you could say the same about Ford, and it appears to have an edge on GM when it comes to electrification.

In early March, InvestorPlace contributor Brett Kenwell gave three reasons why Ford stock was a top buy. Since Brett’s spot-on call, F is up 24%.

Like Brett, in the past, I’ve favored GM stock over Ford. That’s no longer the case. In mid-April, I speculated on Ford stock hitting $20, something that I wouldn’t have considered just six months ago.

In my opinion, if you’re thinking GM, you’ve got to go Ford regardless of what Barra said about electric.

At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.