General Motors Co. (NYSE: GM) plans to boost the production of Cadillac SUV and electric trucks by over six-fold in 2022, compared to the earlier plan, Reuters reported citing information shared with the company’s suppliers.
GM plans to manufacture 46,000 battery-powered Cadillac SUVs and electric trucks this year versus the previously planned output of 7,000.
The company said, “As we have said, we have announced battery cell and assembly capacity investments that will give us more than 1 million units of EV capacity in North America by the end of 2025. We now have teams working to accelerate all of our upcoming EV launches, and our target is to deliver 400,000 EVs in North America over the course of 2022 and 2023.”
The automaker told its suppliers to plan for the production of 21,000 GMC Hummer EV trucks this year at its Factory Zero in Detroit. GM had earlier planned to build 3,800 of these vehicles.
The company has also asked its suppliers to prepare for the production of 25,000 Cadillac Lyriq electric SUVs, up from the previous plan of 3,200.
About General Motors
Michigan-based General Motors is engaged in the design, production and sale of cars, trucks, and automobile parts. Its brands include Chevrolet, Buick, GM, and Cadillac.
GM stock closed 2.5% down on Tuesday. However, it gained 0.3% in the extended trading session to end the day at $49.59.
On February 8, Morgan Stanley analyst Adam Jonas downgraded the rating on the stock to Hold from Buy and lowered the price target to $55 from $75 (11.2% upside potential).
In a note to investors, the analyst said, “While GM has big plans for its new line of electric vehicles, there’s rising execution risk on an absolute and relative basis more than we previously believed. That could translate into a slower-than-expected ramp-up of EVs in North America.”
Overall, the stock has a Moderate Buy consensus rating based on 10 Buys and 4 Holds. The average GM price target of $75.57 implies 52.8% upside potential. Shares have lost 19.1% year-to-date.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into GM’s performance.
According to the tool, compared to the previous year, GM’s website traffic registered a 9.7% decline in global visits in December. Moreover, the website traffic has decreased nearly 8% year-to-date against the same period last year.
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