General Motors (NYSE:GM) recently acquired an Israel-based software startup, Algolion, that specializes in detecting battery issues for electric vehicles (EVs). This acquisition will enable GM to strengthen its capabilities in offering a cost-effective early hazard detection system for car batteries.
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Algolion has developed software that uses data streams from EV battery management systems to help identify anomalies in cell performance. This software enables the identification of hazards, including the risk of fire.
The financial terms of the acquisition have not been disclosed. At the same time, Algolion’s six employees, including the founders, will be joining over 850 employees at the GM Technical Center located in Herzliya, Israel.
The company said that the deal was led by the Technology Acceleration and Commercialization (TAC) organization, a newly formed group within GM. The TAC’s purpose is to identify emerging technologies that can enhance GM’s position in EV battery development.
Is GM Stock a Buy?
In addition to making solid progress on its electrification plans, General Motors’ management is also committed to reducing expenses by $2 billion annually. Moreover, the company remains confident about its performance, which is reflected in the upward revision of its full-year 2023 adjusted EBIT guidance. The metric is now expected to come in between $11 and $13 billion, compared to prior expectations of $10.5 and $12.5 billion.
Of the 11 Wall Street analysts covering GM stock, six gave a Buy rating, while five gave a Hold rating. Overall, GM has a Moderate Buy consensus rating. Further, analysts’ 12-month average price target of $46.90 implies a 21.6% upside potential from current levels.
As per TipRanks data, the most accurate analyst for GM is J.P. Morgan analyst Ryan Brinkman. Copying the analyst’s trades on this stock and holding each position for one year could result in 70% of your transactions generating a profit, with an average return of 16.35% per trade.
