Economy Shares

General Motors transitions to the electric vehicle market

General Motors has announced the launch of a new electric sport utility vehicle (SUV) priced at $30,000. The idea behind is to supplant Tesla’s Model Y with an entry-level electric SUV.

general motors

American automaker General Motors also pledged to grow its annual revenue to $280 billion by 2030 by promoting electric vehicles, autonomous driving technology, and software subscription services.

Media outlets such as the Wall Street Journal (WSJ) and CNBC report that GM has posted such ambitious aspirations ahead of its annual two-day investor conference on the same day.

The company announced its plans to surpass Tesla and become the number one electric vehicle seller in the United States.

By 2030, GM expects to grow its global sales to $280 billion from $122.5 billion last year and be able to nearly double its operating margin, from 7.9 percent last year to 12-14 percent.

Yet GM’s embrace of electrification has attracted investors increasingly concerned about climate change. GM has carved out a leadership position in battery technology, according to the hedge fund Engine No. 1.

Cruise, an autonomous vehicle services company owned by GM, is expected to bring in $50 billion in revenue by 2030. Cruise received licenses in California last week to accept passengers, though it has yet to charge for rides.

In addition, GM is investing in e-commerce delivery unit BrightDrop and insurance offerings through its Onstar brand. According to GM, 15 startups will form new business lines in the future.

GM plans to invest $35 billion by 2025 to launch 30 electric vehicles worldwide.

GM’s strategy to accelerate the transition to electric vehicles and diversify its sales should also support the stock price.

Based on the closing price of its stock on the 5th, GM shares have jumped 30% over the past year, far outpacing market growth.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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