According to one tech expert, General Motors is poised for a “renaissance” of growth in electric vehicles. The analyst launched coverage of the stock with a target price of $50, meaning that the stock might gain 50%. Wedbush analyst Dan Ives, who is positive on Tesla TSLA, +1.27 percent, said late Thursday that CEO Mary Barra has returned the company to the top of the U.S. auto sector, with the company now accounting for more than 17 percent market share—and ready for greater growth.
Stocks in General Motors
On Friday, GM, -0.94 percent rose 2.5 percent in premarket trading in the United States. GM has set a goal of investing $35 billion in research and development for electric vehicles by 2025, in order to accelerate the introduction of new models and the development of cutting-edge battery technology. Also check out: According to UBS, Mercedes’ new “Tesla fighter” outperforms the Model S on two crucial metrics. “Going forward, GM continues to be a re-rating story as the Street treats the Detroit automaker as a broader disruptive technology play that can start to trade at multiples similar to Tesla and other pure-play electric vehicle companies as GM executes on its vision,” Ives said as he began coverage of the stock. “With at least 20 new electric car models coming out in the next two years and 30 in the next three,” the analyst continued, “2021 acts as an inflection point for legacy auto companies as they entirely shift their focus towards an electric future.” Ives set a $85. target price for GM stock. With the stock currently trading around $56, it appears that the stock has the potential to rise by 50%. If the market acknowledges the importance of GM’s electric-vehicle approach, as Ives predicted, the company will follow in the footsteps of Volkswagen VOW, +2.64 percent and Ford F, -1.19 percent, which have both seen their stock prices rise this year after announcing their own electric-vehicle plans. Plus: This major Tesla competitor has a $36 billion strategy for winning the electric vehicle race. Here’s everything you need to know. In the United States, GM is up against Ford, Tesla, and Stellantis STLA, -3.16 percent, which includes brands like Dodge, Jeep, Peugeot, and Citroen and was established out of the $52 billion merger of Fiat Chrysler and PSA earlier this year. Stellantis stated on Thursday that it will invest €30 billion ($36 billion) in an electric vehicle strategy that will see all-electric vehicles rolled out across its 14 brands. By 2024, the company intends to launch an all-electric Dodge Ram pickup truck. Analysts are keeping a careful eye on the electric pickup truck industry in the United States, which has historically been a significant revenue producer and is seen as a key sector for converting the general public to other electric cars. Ford’s electric F-150, as well as GM’s electric Silverado, are both due in the coming quarters./n
