General Motors (GM) plans to invest $300 million in Momenta, a leading autonomous driving technology company. The investment is aimed at accelerating the development of next-generation autonomous technologies for GM vehicles in China. GM shares rose 2.24% to close at $51.92 on September 23.
General Motors is a U.S. company that designs, manufactures, and sells different types of cars. It is also working on electric vehicles and autonomous technologies.
According to General Motors China President Julian Blissett, the investment is in response to Chinese customers embracing electrification and self-driving technologies. Momenta has emerged as a perfect partner for the U.S. automaker as it is working on Artificial Intelligence solutions that have the potential to enhance personal mobility.
Momenta has already made impressive strides towards fully autonomous driving. The company has combined data-driven approaches with iterate algorithms. (See General Motors stock charts on TipRanks)
“Together with GM, we will jointly invest in autonomous vehicle technologies to enhance driving safety, convenience and efficiency,” said Xudong Cao, CEO of Momenta.
The $300 million investment, announced in June, followed GM’s confirmed plans to invest $35 billion into the development of electric and autonomous vehicle technology through 2025. The U.S. automaker is seeking to expand its design and engineering facilities in China as it aims to boost the capability of delivering over-the-air software updates.
In addition, General Motors is open to collaborating with companies worldwide to build its technology capabilities to address varying customer needs.
In August, RBC Capital analyst Joseph Spak reiterated a Buy rating on the stock with a $75 price target, implying 44.45% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 13 Buys and 1 Hold. The average General Motors price target of $73.36 implies 41.29% upside potential to current levels.
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