Tesla bull calls this auto giant’s $35 billion electric strategy a ‘renaissance’ and says the stock could soar

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General Motors is headed for a “renaissance” of maturation successful electric-vehicles, according to this tech analyst, who initiated sum of the banal giving the shares a people terms implying that they could emergence 50%.

Dan Ives of Wedbush, who is besides bullish connected Tesla TSLA, +1.27%, said precocious Thursday that CEO Mary Barra has led the radical backmost to the apical of the U.S. car industry, with the car elephantine present accounting for much than 17% marketplace share—and poised for much growth.

Shares successful GM GM, -0.94% ticked up 2.5% successful the U.S. premarket connected Friday.

GM plans an ambitious strategy for electrical vehicles, involving $35 cardinal successful probe and improvement by 2025 to thrust the rollout of caller models and the improvement of cutting-edge artillery technology.

Also read: This caller ‘Tesla fighter’ from Mercedes beats retired the Model S connected 2 cardinal measures, UBS says

“Going guardant GM continues to beryllium a re-rating communicative arsenic the Street treats the Detroit automaker nary longer arsenic a accepted car institution trading based connected publication value, but a broader disruptive exertion play that tin commencement to commercialized astatine multiples akin to the likes of Tesla and different pure-play electrical conveyance companies arsenic GM executes connected its vision,” Ives said, arsenic helium initiated sum of the stock, standing it to Outperform.

“With astatine slightest 20 caller models of electrical vehicles coming retired wrong the adjacent 2 years and 30 successful the adjacent three, 2021 serves arsenic an inflection constituent for the bequest car institution arsenic they are wholly shifting absorption towards an electrical future,” the expert added.

Ives gave GM banal a people terms of $85. With the shares trading astir $56, that suggests the banal has legs to ascent 50% higher.

If the marketplace recognizes the worth of GM’s electric-vehicle strategy, arsenic Ives suggested, the banal would travel a akin way arsenic the likes of Volkswagen VOW, +2.64% and Ford F, -1.19%, which person some seen their stock prices ascent this twelvemonth arsenic they’ve outlined their ain EV ambitions.

Plus: This cardinal Tesla rival has a $36 cardinal program to triumph the electric-vehicle race. Here’s what you request to know

In the U.S., GM faces pugnacious contention from the likes of Ford, Tesla, and Stellantis STLA, -3.16% —the radical formed retired of the $52 cardinal merger of Fiat Chrysler and PSA earlier this year, which includes brands similar Dodge, Jeep, Peugeot, and Citroen.

On Thursday, Stellantis announced a strategy to put €30 cardinal ($36 billion) successful an EV strategy that would spot all-electric models rolled retired crossed its 14 brands. The group’s program includes motorboat an all-electric Dodge Ram pickup motortruck by 2024.

Analysts are intimately watching developments successful the electrical pickup motortruck marketplace successful the U.S., which has historically been a beardown currency generator and represents a pivotal marketplace for turning the wider colonisation connected the roadworthy to different electric-vehicles.

Ford’s electrical F-150 is expected successful coming quarters, arsenic is an electrical mentation of the Chevrolet Silverado from GM.

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