Activist hedge fund Engine No. 1 announced that it has a stake in General Motors, citing the automaker’s push for widespread all-electric vehicle adoption.
Per a recent post from Reuters, Engine No. 1 took its stake in General Motors back in August, but declined to issue a public statement on its intentions regarding the automaker until now. The hedge fund reportedly took a stake of nearly 400,000 shares.
“The company’s early lead on battery technology, along with Mary Barra and the board’s leadership, creates tremendous advantages,” said Engine No. 1 founder Chris James. “There’s a narrative that only tech companies can move quickly to embrace change and win as the world changes. We don’t think that’s true. GM has that leadership.”
Engine No. 1 also indicated that it had “very constructive and collaborative two-way conversations” with General Motors, and that the automaker was set to “recapture market share” with its latest battery technology.
General Motors stock value was up 3.2 percent following Engine No. 1’s announcement.
Engine No. 1 made headlines earlier this year after it challenged ExxonMobile, criticizing the oil and gas giant for its environmental record and carbon footprint reduction efforts. Engine No. 1 has also pressured Apple to make efforts to reduce children’s smartphone usage.
Engine No. 1 released a white paper Monday that outlines the need for the auto industry to transition to all-electric power and how automakers can facilitate that change, in particular General Motors.
“We value the perspectives of all stakeholders as we continue driving the future of mobility,” said GM spokesman Jim Cain said in an email, per the Reuters report.
General Motors has invested heavily into EVs as of late, stating that it will launch 30 new all-electric vehicles by 2025. GM has also stated that it has earmarked $35 billion in investments for new electric vehicle and autonomous vehicle technologies through 2025, and that it will achieve carbon neutrality for North American operations by 2025.