According to a report published by Reuters, Michigan-based General Motors (GM) plans to double its revenues to nearly $280 billion by 2030 and become the leader in U.S. electric vehicle sales, CEO Mary Barra told investors.
The Chief Financial Officer at General Motors, Paul Jacobson, said, “GM expects pre-tax profit margins of 12% to 14%, which could beat current levels. That would imply annual pre-tax profits of as much as $39 billion.”
“GM can fund $9 billion to $10 billion in annual capital spending for electric vehicles (EV) and other initiatives while returning money to shareholders,” Jacobson added. (See General Motors stock chart on TipRanks)
Jacobson added that the company expects its combustion vehicle business to grow even as EV revenues rise from $10 billion projected in 2023 to $90 billion by 2030. Moreover, by 2030, GM plans to generate revenues of $80 billion from new businesses like the Cruise autonomous vehicle ride service.
Meanwhile, the automotive giant plans to launch an electric version of its Chevrolet Silverado pickup truck next year. Barra will unveil the model at the CES technology show that is scheduled to be held on January 5.
Following the announcement, Deutsche Bank (DB) analyst Emmanuel Rosner maintained a Buy rating on the stock with a price target of $68 (26.1% upside potential).
The analyst said, “The 2030 revenue goal includes $50 billion revenue from Cruise, and it will be important to see if this means GM plans on keeping a majority stake.”
Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 1 Hold. The average General Motors price target of $72 implies 33.5% upside potential. Shares have gained 70.6% over the past year.
According to TipRanks’ Smart Score rating system, General Motors scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
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