GM Stock Could Rise If EV Spinoff Materializes, Analysts Predict
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As General Motors’ battery-driven future continues to crystallize, analysts are speculating that the automaker could see a significant boost to stock prices following a spin-off for its electric vehicle business. One analyst even predicts that GM stock could triple in the wake of a GM EV spinoff brand.
Per a new report from Fortune, Deutsche Bank analyst Emmanuel Rosner said that Wall Street’s enthusiasm for EV companies like Tesla could help to drive GM stock to $93 if the automaker offers a stake in its EV business on the stock market. Rosner added that GM was most likely “actively evaluating the option,” and that a spinoff “would force the market to recognize [GM’s] robust EV technology and upcoming vehicle lineup and unlock considerable shareholder value.”
Morgan Stanley analyst Adam Jonas also weighed in on the issue, saying that the GM EV business, plus a stake in its battery joint venture with LG, could result in a rise for the company’s stock. Jonas subsequently raised his price target for GM stock to $46.
“It’s about time Tesla had more competition, right?” Jonas wrote in a report on Tuesday.
The new GM BEV3 electric-vehicle platform
GM stock prices were at $29.88 Tuesday afternoon. Shares have gained upwards of 21 percent this month, with an 18-percent loss for the year, and gains of less than five percent over the last five years.
Back in October of 2019, GM Authority proposed that GM launch a new standalone brand for its electric vehicles, something which would offer a sleek, futuristic, and tech-saavy marketing strategy, as well as a separate dealership network.
Then in July, during a call with analysts following the release of the GM Q2 2020 earnings numbers, GM CEO Mary Barra was asked if General Motors would consider an EV spinoff brand.
“We are open to looking at and evaluate anything that we think is going to drive long-term shareholder value, so I would say nothing is off the table,” Barra responded, adding that she saw no obstacles to making it a reality.
Cadillac Lyriq show car
General Motors currently offers the Chevrolet Bolt EV as it’s sole all-electric vehicle offering, but has several other EV products just over the horizon. For example, GM recently debuted the Cadillac Lyriq show car, which previews the upcoming Lyriq EV crossover slated for production late in 2022. General Motors is also revamping the Hummer brand as a new all-electric pickup truck and SUV.
Both the Lyriq and the Hummer EV will come with GM’s Ultium battery technology, which was developed in a new joint venture with South Korean supplier LG Chem. The joint venture is called Ultium Cells LLC.
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GM never misses an opportunity to miss an opportunity!
GM has the technology to build a Tesla rival competing in ever segment. Five years ago this distinction should have gone to Cadillac but idiots still thought the brand could take on the Germans and analysts suggested The Crest to have a 20 Billion spin off value. HA!
GM trickling EV technology though out its US brands is fine but doesn’t make a Tesla Rival. It needs Nickola or Lucid as brands to go mose to nose with Tesla.
Is GM an auto retailer, Silicon Valley technology company or both. Maybe GM should spin off Cruise, the LG joint venture, GM EV and call it Global Mobility Autonomy an Fuel Cells (GMAFC) & then sell its tech to everyone including old General Motors?
General Motors has a debatable future in retail outside Latam & China–if Sino American peace prevails. In the US Buick, though profitable, is still a dinosaur, Cadillac just hasn’t caught on regardless of investment, Chevrolet screams bad credit. GMC is the only Detroit vehicle brand aside from Jeep that one sees sharing a driveway with BMW or BENZ. General Motors best shot at steady profits is through GMC Buick dealerships so I guess that means Buick. not Cadillac, should get EV and AV investment first.