Why General Motors Stock Got Turbocharged Today
General Engines (NYSE:GM) notably ahead of the rest of the peloton at the start of the afternoon on Tuesday. Shares rose more than 5%, while S&P500 the index increased by less than 2%.
Shares of the giant automaker gained on the back of a new product announcement, as well as a potentially lucrative deal with a huge government client.
The new product is the electric vehicle (EV) version of its Chevrolet Blazer midsize SUV. GM said the 2024 Chevrolet Blazer EV, as the first models will be known, is expected to hit the market next summer.
The new vehicle will start at $47,595 upon rollout. The company aims to offer consumers a wide choice with the Blazer EV; it will have a variety of toppings and options. These include different ranges, topped off with what GM estimates at 320 miles per full charge.
That’s not the only potentially new VE front opening up for the company. Also on Tuesday, its GM Defense subsidiary announced that it would provide a demonstration vehicle based on its GMC Hummer EV to the US military. This is provided “for analysis and demonstration”, in GM’s words.
The company added that it will prove “what an all-electric supertruck can do and how the underlying technology can be exploited for future defense needs…”.
With these two rather muscular moves, GM is showing investors that it can compete in the EV space.
Yet this is just the beginning, and the EV space continues to grow and transform rapidly. Either way, we can expect the company to “move the metal” effectively with the Blazer EV, especially given the flexibility of options and the relatively reasonable sticker price.
We can also imagine that GM Defense will mobilize its sales force to convince the army to sign a big contract to supply electric vehicles. Both news are very encouraging.
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Eric Volkman has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.
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