GM finds love on Wall Street for a change
General Motors is finding love on Wall Street, something it hasn't experienced in a very, very long time.
What's happening: Investors are beginning to give credence to the Detroit automaker's electric vehicle strategy — or they're looking for a cheaper way to participate in the Tesla-inspired run-up in electric vehicle stocks.
Driving the news: GM was "the star of the show" at this week's virtual CES, EV bull Dan Ives, a Wedbush Securities analyst, said in a note Thursday.
- In a keynote address, GM CEO Mary Barra said the industry had reached "an inflection point" for electric vehicles, and outlined progress on the company's Ultium battery technology and several upcoming EVs.
- Barra also unveiled a new electric vehicle business unit, BrightDrop, focused on deliveries and logistics, with FedEx among its first customers.
What they're saying: While Tesla and other EV upstarts soared, GM stock has languished for years, despite record profits. Now analysts say that investors may have underestimated GM's potential.
- GM's EV strategy "lays out a new path of growth for the company and makes them a major player in the EV industry for years to come," Ives said.
By the numbers: Shares of GM have gained 46% in the past 12 months, compared with gains around 16% for the S&P 500 index.
- Shares of GM have gained 46% in the past 12 months, compared with gains around 16% for the S&P 500 index.
Yes, but: GM's $74 billion market cap is still one-tenth the size of Tesla's.