Financial analysts have predicted that if General Motors were to create a separate entity to sell electric vehicles under, the automaker’s stock price could rise sharply given Wall Street’s response to Tesla shares. GM CEO Mary Barra has indicated the company could be open to taking that route one day in the future, but based on more recent remarks from Barra, it may not happen any time soon.
Speaking at a recent RBC conference, Barra said the automaker is not interested in a “short term pop” of its share price and is instead focused on ventures that will give the company better valuation in the long run.
“As I’ve said many times, we will always do what’s in the best interest of our shareholders over the long term, not necessarily for a short-term pop,” Barra said, as quoted by Automotive News.
While Tesla’s massive valuation is the envy of the auto industry, GM is confident that new products like the GMC Hummer EV and Cadillac Lyriq, along with core technologies like its BEV3 and BT1 platforms, Ultium batteries and Hydrotec fuel cells, will catapult it to success as the industry continues to make a shift toward electrified vehicles.
One of GM’s core EV strategies going forward will be license technology like its Ultium batteries to other automakers and manufacturers. It recently entered a strategic alliance with Honda that will enable the Japanese automaker to leverage GM electric vehicle tech. It also recently agreed to provide its electric and hydrogen technology to Nikola Corp, however this partnership came under fire after a report alleged the electric truck company was a fraud that exaggerated the capabilities of its products.
Barra was asked about the Nikola partnership this week and referred any related questions to Nikola itself, AN reports. She did say the partnership will allow GM to validate its electric and hydrogen fuel cell technology in third-party equipment, however, and allow it to cut manufacturing costs due to the increased scale.
The Nikola deal will see GM take an 11 percent stake in the electric truck maker. Nikola stock soared by more than 50 percent following the announcement last week, but it has fallen by more than 34% from its previous high due to the report.
Comments
There’s little that General Motors can do which would increase stock value except increasing the appeal of their vehicles to outsell the competition and it could potentially as easy as concentrating on some details of each vehicle as some in the GM lineup are not much fun to drive.
I also think the same omegatalon,
What, what short term action would GM take ?
I really mean, what short term action can GM take ?
Unlike the brilliant bank analysts ( Ha, Ha, Ha ), there is no way to say spinning anything off of GM would result in any stock price gain.
And the cost, waist more money on something that is not a product or vehicle.
I got an idea, GM.
Spend some money on the products you need customers to buy and be happy owning !
Mary Barra is a liar then. GM has purchased more than $10 billion dollars of their own stock since 2015 in order to inflate the existing stocks. Many executive’s salaries, including Barra’s are based on stock price. So instead of creating actual value (ie making and selling products customer want to buy) they simply take profits and do stock buybacks. The problem with conducting business this way is that it is pulling money away from other things such as research and development.
the company is being ruined ,not listening to your costumers and telling them what they must buy is not the way to succeed ,,,cheap interior trim–interior color combinations —poor option packages–switch to all suv’s —electric—self driving —poor advertising —-over paid ceo wages . consumers today are not loyal to one company ,they have to be wowed,,, there is too much competition and good is not good enough today oh not to mention POOR customer service –engines burning oil –transmission failure — headlight housing discolored ,,,come on gm was better than that . with the same CEO’s nothing will change .
Mary must go.
See the video when car dealers attack on YouTube workingmen1
Why does Barra have assult on children’s on YouTube workingmen1
Throw Barra out she worthless
GM should walk her out and replace her with a younger more intelligent and less expensive CEO.
Barra needs to Resign before she Completely Ruins GM and moves it to China.