General Motors plans to introduce an electric vehicle (EV) pickup truck, Chevrolet Silverado, that will be built at the company’s Factory Zero plants in Detroit and Hamtramck, Michigan. The company will also be assembling the recently unveiled GMC Hummer EV SUV at Factory Zero.
General Motors’ (GM) President, Mark Reuss said, “The vehicles coming from Factory ZERO will change the world, and how the world views electric vehicles. The GMC HUMMER EV SUV joins its stablemate in the realm of true supertrucks, and Chevrolet will take everything Chevy’s loyal truck buyers love about Silverado — and more — and put it into an electric pickup that will delight retail and commercial customers alike.”
The company has plans to deliver one million EVs globally by 2025. According to GM, the company has reduced the time frame for vehicle development by 50% to 26 months by using GM’s Ultium Platform, technology and virtual development tools. (See General Motors stock analysis on TipRanks)
In January last year, the company announced an investment of $2.2 billion in its Detroit-Hamtramck assembly plant to produce EVs including trucks and SUVs. In October last year, GM renamed the plant Factory Zero.
On April 5, Wells Fargo initiated coverage on GM with a Buy rating and a price target of $67 on the stock. The analyst commented, “GM plans to roll out the 3rd generation of EV vehicles using its Ultium EV battery technology on exciting products like the new Hummer and Cadillac Lyric.”
“While restructuring work still needs to be done internationally, GM’s N American operations are strong, reporting a 9.4% adj EBIT margin in 2020, an incredible performance in a market down 20%,” the analyst added.
The rest of the Street is bullish about the stock with a Strong Buy consensus rating. That’s based on 11 analysts suggesting a Buy and 1 analyst recommending a Hold. The average analyst price target of $68.58 implies around 7.5% upside potential to current levels.
According to the TipRanks Smart Score system, GM scores a high 9 out of 10 indicating that the stock is highly likely to outperform the market.
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