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Here’s Why GM Stock Rose 5.5% on Tuesday

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GM stock jumped on Tuesday after the company unveiled a new electric vehicle. Let’s learn more about the EV in this article.

Shares of General Motors Co. (NYSE: GM) closed almost 5.5% higher on Tuesday after the company unveiled its 2024 electric Chevrolet Blazer. The vehicle will feature multiple ranges and come in several versions, including Police Pursuit Vehicle (PPV) model, electric SS performance model, RS, 2LT, and 1LT.

The EV is expected to be available next year, with its price ranging between $45,000 and $66,000.

The Vice-President of Chevrolet, Scott Bell, said, “Along with the all-new Silverado EV and Equinox EV coming next year, we are making great strides in offering more choices for zero tailpipe-emissions vehicles — choices that make switching to an EV easier than ever.”

The automaker will manufacture the new Chevrolet Blazer EV at its plant in the Mexican city of Ramos Arizpe. It has started taking online reservations for the vehicle for a deposit of $100.

Meanwhile, the U.S. Army has awarded a contract to GM Defense, a subsidiary of General Motors, to provide a battery EV for analysis and demonstration. The company plans to supply the GMC HUMMER EV Pickup to the Army to reduce dependence on fossil fuels in garrison and operational environments.

GM Stock Has over 54% Upside Potential

On TipRanks, the stock has a Moderate Buy consensus rating based on 11 Buys, three Holds, and one Sell. GM’s average price target of $53 reflects upside potential of 54.1% from current levels. Shares of the company have lost 38.7% over the past year.

Hedge Funds Are Positive on GM

TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in GM is currently Positive, as the cumulative change in holdings across all 25 hedge funds that were active in the last quarter was an increase of 2.3 million shares.

What’s Next for GM?

The Detroit-based auto giant is scheduled to release its second-quarter results next week. The Street expects the company to post earnings of $1.32 per share, down from $1.97 per share last year. In the first quarter, EPS declined 7.1% year-over-year to $2.09, beating analyst expectations of $1.65.

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