Jan 15, 2021 - Energy & Climate

GM finds love on Wall Street for a change

Joann Muller

Image of GM's EV 600 electric delivery truck with FedEx branding on the side — GM EV600 electric delivery truck. Photo: GM

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.

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GM finds love on Wall Street for a change

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