Microsoft (NASDAQ:MSFT) expands its presence in the electric vehicle (EV) market by investing its climate innovation fund in Group14 Technologies. This startup manufactures silicon battery technology and aims to reduce battery costs and boost the charging times of electric vehicles.
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The tech giant is one of the investors in Group14’s $214 million additional financing round. Earlier in May, the battery manufacturing startup raised about $400 million in Series C funding led by Porsche AG. Moreover, it has received a $100 million grant from the Biden-Harris Administration and the U.S. Department of Energy (DOE).
Group14 seeks to invest the raised funds and the grant in opening its second Battery Active Materials factory, with a view to boosting the production of SCC55, its silicon-carbon battery technology.
In terms of Microsoft’s investments in the EV space, the company invested an undisclosed amount in Cruise, a company that develops electric, self-driving vehicles, in January last year. Both companies also entered a long-term strategic relationship under which Cruise uses Microsoft’s cloud computing service to enable the commercialization of these vehicles at scale. It is worth mentioning that Cruise is primarily owned by General Motors (GM).
Should You Buy MSFT?
There is no doubt that Microsoft is one of Wall Street’s favorite picks. The company’s consistent dividend history and sound financial position, along with its diverse business operations and ability to increase market share, make it an attractive option.
Microsoft stock has a Strong Buy consensus rating based on 25 Buys and three Holds. The average stock price target of $291.10 suggests about 13.2% upside potential from current levels. Shares have declined 22.4% year-to-date.
