Automotive manufacturer Hyundai Motor Company (HYMLF) plans to start manufacturing electric vehicles (EVs) in the U.S. and plans to start production of its first EV at its Montgomery assembly line.
The company is planning to invest $300 million in its electric Genesis GV 70 and the hybrid model of its Santa Fe. To support the move, the company also plans to undertake plant expansion to accommodate further warehouse space and assembly processes.
Importantly, it aims for a $1.55 billion investment by 2030 for a beginning annual capacity of 150,000 vehicles. The figure would be further expanded to 250,000 annual vehicles.
Enhanced 2023 Palisade SUV makes New York Debut
Moreover, this week, Hyundai also debuted its enhanced 2023 Palisade SUV at the New York International Auto Show. The model, which will be available at dealers this summer, packs in new infotainment and safety features and advanced driver assistance systems along with new interior and exterior design cues.
Additionally, Hyundai’s all-electric IONIQ 5 was named World Car of the Year, electric vehicle of the year, and car design of the year at the World Car Awards held at the New York International Auto Show.
Since its 2021 launch, the model has also been named German Car of the Year and UK car of the year. The company is transforming to become a smart mobility solutions provider and plans to have 17 battery electric vehicle (BEV) models by 2030, while aiming for annual worldwide BEV sales of 1.87 million units by 2030.
Analyst Take
At the time of writing, Credit Suisse analyst Michael Sohn reiterated a Buy rating on the stock alongside a price target of $210.06, implying a 23.6% potential upside for the stock.
Closing Note
Hyundai’s move to start EV production on Tesla’s home turf is a key move by the company. The company has set a strategy for 2030 in place and may benefit from the rapidly evolving EV ecosystem in the U.S., which includes regulatory push along with private investments for charging stations and battery development as well. Award wins in New York also provide major market validation for the company’s current EV models.
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