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Unveiled its “Ultium Drive” on Wednesday. It sounds high tech, but it is not science fiction. Ultium is a solution for today’s electric-vehicle market and features a set of five interchangeable drive units and three electric motors that will help GM fulfill its goal of becoming an all-EV auto manufacturer down the road.
(TSLA), on the other hand, trades about 50 times the projected 2023 earnings. However, it is better to compare the earnings of GM and Tesla in the future, as Tesla is growing more rapidly than GM.
GM is working hard to shift management perception. The company hosted battery technology the day before in 2020, fumbling its designs and covering 400 miles on a single charge. He is better than average. According to government testing Tesla is the only electric-auto manufacturer with a model that can travel 400 miles without recharging.
In July, GM announced plans to build a fast-charging station for EVs, partnering with EVO.
Recent news and the success of EV companies in 2020 have left Wall Street analysts wondering whether GM should divest its electric-vehicle business into a separate company. It can trade at a higher level and has no inherited internal-combustion-engine business problems.
GM management has not said anything definite and is keeping its option. GM’s idea as an EV company, however, received another boost in early September
(NKLA) selected it to supply batteries and fuel-cell technology for the startup’s upcoming alternative-fuel heavy-duty trucks.
GM stock is up about 7% since that announcement. However, Nicola shares are down about 8%. Nikola stock has been a recent hit by a short seller report by Hindenburg Research.
“GM has produced transmissions for several notable auto manufacturers,” said Ken Morris, vice president of autonomous and electric vehicle programs. “Making motors, transmissions, driveline components and systems is one of GM’s best-known competencies, and our manufacturing expertise is proving not only transferable but profitable as we transition to EVs.”
His statement seems like another step in turning GM into not only an EV company, but an EV supplier.
By Wednesday afternoon, GM stock had risen 1.1% to about $ 32 a share.
Dow Jones Industrial Average
Were up 0.5% and 0.93% respectively.
Year over year, GM shares are down about 13%. EV StockBaron’s The tracks are about 400% on average.
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