This article was originally published on TipRanks.com
General Motors Co. (NYSE: GM) revealed electric versions of Chevy Equinox and Blazer SUVs, along with its electric pickup truck Chevy Silverado at the 2022 Consumer Electronics Show held on January 5.
As a part of the keynote address, CEO Mary Barra disclosed that both the electric versions of Chevy Equinox and Blazer SUVs will be available to dealers in 2023.
Despite the launch, GM shares were down 4.6% on January 5 to close at $62.74 after it lost the top spot as America’s largest automaker to Toyota (TM), after the latter’s U.S vehicle delivery numbers outpaced General Motors for 2021.
The EV Road Ahead
The launch of Equinox EV and Blazer EV underpins GM’s planned commitment worth $35 billion towards the electrification of its lineup by 2040.
Competing with the top EV stocks, GM plans to make EVs more affordable with its new launches, enabling the accelerated switch to EVs globally. The EV Chevy Equinox will sell at an expected price of $30,000.
Furthermore, there is an impressive line-up of EVs under production including the Chevy Bolt EV and EUV, the Hummer EV pickup and SUV, the GMC Sierra EV, and the Cadillac Lyriq and Celestiq.
Management Weighs In
Steve Hill, VP of Chevrolet, commented, “The Equinox has always played an important role for Chevrolet as the second-highest selling brand nameplate.”
He further added, “Providing an affordable EV option in the industry’s highest volume segment proves Chevy is going to make EVs available to everyone.”
Wall Street’s Take
Dan Ives from Wedbush Securities commented, “The GM EV transformation story heading into 2022 is slowly starting to get recognized by the Street as we believe an EV driven re-rating is now in process.”
Meanwhile, following the announcements, Citigroup analyst Itay Michaeli reiterated a Buy rating on the stock, with a price target of $96 (53% upside potential).
While Michaeli was impressed by the specifications including 400 miles range on the debuting trims, as well as other features, he thinks that the disclosures on the Silverado prices and trims were limited with “a slower volume cadence”.
Overall, the stock has a Strong Buy consensus rating based on 11 Buys and 3 Holds. The average General Motors stock price prediction of $73.85 implies 17.7% 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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