General Motors has aggressively pursued alternative avenues outside of the traditional car-building and selling business. It’s launched Maven, acquired Cruise Automation and recently announced its commitment to an all-electric future.
Last week, it was enough to rally GM share prices to an all-time high—GM shares rose 3.1 percent. This week, they’ve leveled out, but remain at a solid state. CNBC reports the automaker’s stock price will likely stay at its current level before rallying again in the near future. Bank of America Merrill Lynch research analyst John Murphy also upgraded his rating on GM stock from “neutral” to “buy.”
“We think GM’s ability to integrate an autonomous electric vehicle into a ride-hailing fleet and/or shared fleet, with the overlay of OnStar, puts the company in a unique competitive first-mover position. We expect this will become more obvious as the technology is commercialized over time,” he wrote.
In the short run, GM will roll out two new electric cars in the next 18 months and plans to launch 20 new electric vehicles by 2023. The automaker most recently acquired Strobe Inc, a LIDAR developer, to bolster its self-driving car business.