Good news, of a sort, for legacy automaker General Motors (NYSE:GM) today, as it brought back the Chevy Blazer electric vehicle and cut its sales price. Investors were reasonably pleased, too, sending shares up fractionally in Friday afternoon’s trading.
The price cuts are quite substantial. Now, Blazer electric vehicles will be available starting at $50,195, which is a savings of $6,520. That also doesn’t factor in a tax incentive that allows for a further $7,500 savings. GM cut off sales of the Blazer almost three months ago, needing to institute a major software upgrade that is, apparently, now in place.
Cruise Line Is Suffering
While this is certainly good news for GM, the news wasn’t universally rosy. In fact, reports note that the Cruise line is suffering and may end up handing a win to Tesla (NASDAQ:TSLA). We all know about the problems Cruise has been having, up to and including dragging pedestrians. General Motors has since put a substantial amount of cash into Cruise but hasn’t gotten much out of it. That, in turn, creates an opportunity for Tesla and its Autodrive system to prove its reliability.
What Is the Target Price for GM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 13 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 5.35% rally in its share price over the past year, the average GM price target of $50.28 per share implies 27.39% upside potential.
