The move away from gasoline-powered cars has been something of a bumpy road so far. But still, we try, and auto manufacturer General Motors (NYSE:GM) gained fractionally on a new development in fuel cell technology that it’s working on in a joint effort with Honda (NYSE:HMC). GM and Honda are working together on a hydrogen fuel cell project, which they hope will one day make for a viable diesel replacement.
The development efforts are taking place at a facility near Detroit, with the duo splitting costs that, so far, have added up to over $85 million. But the effort and expense seem about to pay off, as they’ve put together the first “large-scale” fuel cell production operation in the United States. There’s an increasing opportunity for such development as the government gets increasingly involved in gas engine regulation.
Just for Starters
That’s a good start, and there’s more going on here that suggests that GM is planning to make a play for a lot more market share with internal improvements and expansions. First, GM is planning to put $1.4 billion into an expansion in Brazil, which will take until 2028 to be fully realized. Meanwhile, it’s also poised to roll out a new version of its Chevy Equinox SUV, and while it’ll be gas-powered, it will also have several new safety features that were inspired by some of its truck designs.
What is the Prediction for GM Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 14 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 3.12% loss in its share price over the past year, the average GM price target of $46.17 per share implies 31.54% upside potential.
