This article was originally published on TipRanks.com
General Motors (NYSE:GM) plans to invest more than $4 billion as it looks to bolster its electric vehicle production capacity. Reuters reports, citing sources and documents made public, that the automaker plans to invest in two Michigan plants. GM shares jumped 6.02% to close at $63.21 on December 10.
General Motors is one of the world’s largest vehicle manufacturing companies. The company designs manufactures and sells cars, trucks, and automobiles.
GM Investment Drive
The investment drive is expected to result in the construction of a $2.5 billion battery plant. General Motors is also planning to refurbish its Orion Township assembly plant, north of Detroit, to build electric cars as part of a $2 billion investment drive.
Citing documents posted by the city of Lansing, Reuters reports the automaker is considering building a battery cell manufacturing plant there. Once complete by 2028, the facility could end up employing 1,700 people.
General Motors has already confirmed it is developing business cases as part of the investment drive in the state. Nevertheless, the projects are highly dependent on the company securing all available incentives and gaining regulatory approval.
The Lansing battery cell manufacturing facility would be 2.5 million square feet, built on the automaker’s land. State lawmakers in Michigan are moving quickly to approve such projects as they seek to win big electric vehicle and battery plant investments.
Michigan has already lost on Ford opting to build its new battery and electric vehicle production facilities in Kentucky and Tennessee.
Last month, Wedbush analyst Daniel Ives reiterated a Buy rating on the stock, with an $85 price target implying 34.47% upside potential to current levels. According to the analyst, the potential conversion of its massive customer base to electric vehicles presents a massive opportunity for GM.
Consensus among analysts is a Strong Buy, based on 11 Buys and 1 Hold. The average General Motors price target of $74.33 implies 17.59% upside potential to current levels.
GM scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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