Trump Allows Ford, General Motors, Tesla to Make Ventilators
President Donald Trump said Sunday that U.S. automakers Ford Motor (F), General Motors (GM) and Tesla (TSLA) had been given the go-ahead to produce ventilators amid a shortage of the medical equipment needed to treat coronavirus patients.
The president said in a tweet that the auto companies will be permitted to “make ventilators and other metal products, FAST!”. Automakers have been seeking alternative revenue channels as the coronavirus outbreak has forced the closure of many factories.
General Motors on Friday announced a collaboration with Ventec Life Systems to build ventilators. The automaker will lend its logistics, purchasing and manufacturing expertise to help Ventec boost the production of its respiratory care products.
Wall Street analysts remain bullish about General Motors, with 9 Buys and 1 Hold assigned in the last three months. The average price target of $42.78 per share offers investors 136% upside potential in the next 12 months.
Analysts are more cautious about Ford and Tesla. Ford shares have a Hold rating from the analyst consensus, based on 12 reviews, and are priced at an average price target of $8.70. 13 Holds, 4 Buys and 10 Sells ratings given to Tesla over the last three months add up to a Hold consensus rating. At $551.78, the upside potential comes in at 29%.
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