General Motors Drives Toward EV Transition

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When it comes to Electric Vehicles, the first brand that springs to mind would commonly be Tesla. However, its shares have already skyrocketed to 750% in 2020, with its market value 10 times bigger than GM’s, one can only question how much higher it could soar. Another rival manufacturer of EV, Chinese maker NIO’s shares inflated to 1100% in the same year. This uptrend signifies consumer demand for vehicles that run on less natural resources, namely fossil fuels. For investors who regretted not jumping on that boat when prices were still reasonable, General Motors could be their second chance at riding the wave to a greener future.

According to CNN Business, 15 analysts offering 12-month price forecasts for General Motors Co have a median target of 50.00, with a high estimate of 72.00 and a low estimate of 40.00. The median estimate represents a +20.08% increase from the last price of 41.64.

Source: CNN Business

If you’re still not as optimistic as the 15 analysts mentioned above, let’s put the market demand into perspective. Tesla, being the largest EV company, was looking to manufacture 500,000 cars in 2020. In comparison to this number, 75 million vehicles were sold worldwide. This leaves plenty of room for manufacturers like GM to take market share as demand shifts to EVs, and GM is geared towards it.

“Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle.”, says Mary Barra, CEO of GM. The company plans to launch 30 new global electric vehicles by 2025, aiming to invest $27 billion in EVs, and expects to have 1 million EVs on the road by the middle of the decade. GM hopes to make an impact on building a zero-emissions future. While GM’s autonomous vehicle division, Cruise, was last valued at $19 billion, displaying its solid position in the race of self-driving cars.

The next catalyst for GM stock could come on the 12th of January when Barra keynotes the virtual Consumer Electronics Show where GM is expected to highlight concept vehicles and discuss its EV strategy. Till then, keep your eyes on the road.

References:

https://www.fool.com/investing/2020/12/31/3-dirt-cheap-stocks-that-could-skyrocket/
https://money.cnn.com/quote/forecast/forecast.html?symb=gm
https://www.investors.com/research/gm-stock-buy-now/
https://www.fool.com/investing/2021/01/02/bold-prediction-general-motors-next-apple-stock/
https://www.gm.com/electric-vehicles.html
https://www.investors.com/news/gm-stock-deere-visa-top-stocks-break-out-buy-range-2021/