General Motors (GM) plans to spend nearly $154 million on its Western New York Lockport Components plant. The investment will go towards the renovation of the facility and the purchase of new machinery and equipment as the company looks to ramp up the production of electric motor components. GM shares fell 2.51% to close at $53.28 on January 21.
General Motors is one of the largest auto companies that designs, manufactures, and sells cars, trucks, and automobile parts. It is also engaged in electric vehicle (EV) development. General Motors’ upcoming earnings report for Q4 2021 is scheduled for February 01, 2022.
GM’s Electrification Push
The company is looking to kick start the production of the stator module, a key component in electric motors. The motors will power the company’s trucks and SUVs as part of the electrification drive.
The investment is expected to add about 230 new job opportunities between 2023 and 2026. Additionally, it affirms General Motors’ commitment to an all-electric future as it scales electric vehicle production.
While General Motors begins electric motor component production, the Lockport Components plant will continue producing the components that support truck and SUV production. The facility currently produces radiators, condensers, and HVAC modules.
Stock Rating
Deutsche Bank analyst Emmanuel Rosner recently reiterated a Buy rating on General Motors stock and raised the price target to $71 from $67, implying 33.26% upside potential to current levels. The upgrade comes on the expectation of an eventful auto earning season for most green energy stocks, with Q4 results expected to meet estimates.
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average General Motors price target of $75.23 implies 41.20% upside potential to current levels.
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