This week, shares of General Motors jumped after the company made an announcement that it has started the expansion of its electric vehicle development program. General Motors also stated that it plans to launch around twenty fully electric vehicles by the year 2023 with plans to unveil two of these units soon. Shares of the company traded to its highest level since 2010 at $42.15 per share.
From last week’s session, General Motors shares were up by more than 4%. This was due to the renewed outlook on the company as they try to level with Tesla’s growing market and production. Earlier this year, Tesla was able to overtake Ford as the second largest automobile maker in the United States by market value. This concerned GM investors despite Tesla’s comparably smaller delivery and production numbers.
By April, Tesla has overtaken General Motors based on market capitalization due to the optimism surrounding the release of the $35,000 Model 3 vehicle. Despite this, General Motors was able to take back its spot during the past week as more investors grew increasingly concerned regarding Tesla shares compared to General Motors who has been able to cement its claim over the automobile market.
However, analysts maintained their hold on GM shares who also commented that the stock is still very valued due to its standing in the automobile market compared to rival Tesla whose investors are currently concerned with their massive and continuous cash spending and their potential of missing their own delivery targets.
General Motors’ global product development chief Mark Reuss also stated that the company believes in an all-electric future. Reuss also added that future General Motors electric vehicles will be profitable but has not commented on the electric vehicles offering zero-emission.
Last month, the shares of the company also rallied due to their report that sales in China which is one of their biggest markets have jumped by 12% for the month of September recording a sales of 328,425 units. During the month of July, the company also posted a jump of 6% in their vehicle sales. The month of September marked the company’s sales jump for the eighteenth consecutive month.
On Wednesday, GM shares were upgraded by various analysts after the stock rallied by another 2% on Tuesday sending their shares up by 24% for the year. The rating on the stock was upgraded from $40 to as much as $57 which was 35% higher from the stock’s closing price on Monday.
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