{"id":112098,"date":"2021-02-10T18:36:20","date_gmt":"2021-02-10T18:36:20","guid":{"rendered":"https:\/\/precoinnews.com\/?p=112098"},"modified":"2021-02-10T18:36:20","modified_gmt":"2021-02-10T18:36:20","slug":"profits-aside-gms-ev-plans-are-driving-a-now-rising-stock","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/profits-aside-gms-ev-plans-are-driving-a-now-rising-stock\/","title":{"rendered":"Profits aside, GM's EV plans are driving a now-rising stock"},"content":{"rendered":"
DETROIT (Reuters) – General Motors Co is expected to report a healthy fourth-quarter profit on Wednesday thanks to strong demand for gas-burning pickup trucks and SUVs, but the company\u2019s future electric vehicles are now driving the stock, shareholders and analysts said.<\/p> Since November, when Chief Executive Mary Barra outlined plans to boost spending on electric vehicles, GM shares have surged by 60%. Long stuck near the 2010 initial public offering price of $33, the increase has long-time shareholders celebrating.<\/p>\n \u201cI don\u2019t think there\u2019s ever been a more exciting time to be a GM shareholder,\u201d said Michael Razewski, a partner with Douglas C. Lane & Associates, which owns more than 2.84 million shares.<\/p>\n Chris Susanin, director research at GM investor Levin Easterly Partners credited the Detroit company\u2019s \u201cnice steady drum beat\u201d of EV and advanced technology news. He thinks GM could be a $100 stock within a couple years.<\/p>\n GM helped change the narrative since November by boosting spending on and speeding development of EVs, announcing plans for an electric van and dedicated unit to serve commercial customers, and setting a target to stop selling gasoline-powered light vehicles by 2035.<\/p>\n Investors also credit a greater focus by the broader market on EVs, driven by Tesla Inc and the numerous companies going public through mergers with special-purpose acquisition companies, or SPACs.<\/p>\n \u201cThis never struck me as a business that greenfield competitors had an insurmountable advantage,\u201d said Josh Sandbulte, chief investment officer with Greenhaven Associates, one of GM\u2019s largest shareholders.<\/p>\n Investors are starting to hold companies to a higher standard regarding their climate plans. Last month, the head of BlackRock, the world\u2019s biggest asset manager, warned companies it invests in they will need to show a game plan for surviving in a world aiming for net-zero emissions by mid-century.<\/p>\n Also boosting GM\u2019s stock was Microsoft Corp\u2019s investment last month in Cruise, the self-driving business in which GM holds a controlling stake. The Cruise business went from a $19 billion valuation to $30 billion with that deal, supercharging expectations.<\/p>\n Investors now see GM\u2019s sum-of-the-parts business adding up to a much larger number, Barclays analyst Brian Johnson said.<\/p>\n \u201cIf you want to dream big on GM, you\u2019d take the EV business at a Tesla multiple, the (EV) van business at a SPAC multiple and the Cruise business at the Microsoft mark,\u201d said Johnson, who sees an upside case for a $100 share valuation.<\/p>\n