16:50
+23 C°
Traffic jam:   2
$
73.7663
86.8451

GM shares look set to rise with the company's entry into new trillion-dollar markets

17 July 2021
2620
2 min.
6
GM shares look set to rise with the company's entry into new trillion-dollar markets

Entering new markets

Investors in General Motors are now assessing the pace of the company's transition to electric vehicles and the chances of competition. But GM shares can get a boost not only from successes in the electric car market, but also in a dozen innovative markets. Here's what GM is doing in that direction.

Investors in the stock market today see the following two trends:

  1. Among carmaker stocks, those that have embraced electric vehicles are on the rise.
  2. investment analysts and industry experts are giving higher long-term forecasts for those automakers who, following the example of Tesla (TSLA), are building a revenue model for updates to autopilot software in on-board car computers. Auto sales statistics vary from season to season and companies are looking to create additional stable sources of revenue in the form of subscription services (software updates, insurance).

General Motors (GM) is following these two trends because, like many other global automakers today, it does not want to limit itself solely to producing cars. GM began publicly announcing its new markets and areas of development back in 2016, when it acquired the autonomous driving company Cruise. The company managed to find funding for new product development through cost-cutting and the closure of marginally profitable businesses in Europe, Russia and other markets.

GM CEO Mary Barra cut some 64,000 jobs in 2014.

Pamela Fletcher, GM's vice president of global innovation said in an interview with CNBC that the company's innovation division has identified new market opportunities worth $1.3 trillion that could complement its core business. That doesn't include the $8 trillion market potential for Cruise or the $1 trillion-plus market for urban air transport aircraft.

GM shares have risen 112% in the past year, and are up 36.8% since the start of 2021. GM has a market capitalization of about $80 billion.

GM plans to make a presentation to investors this fall on its growth initiatives.

Persons2 and Companies4 in the news

Vice president of General Motors
1 place
Chairman and Chief Executive Officer, General Motors Company
2 place
CNBC
1 place
Tesla
4 place
Section:

Discussion

Rating companies
Apple
76 Mention
Tesla
75 Mention
Nasdaq
72 Mention
Amazon
65 Mention
Dow Jones
60 Mention
Facebook
53 Mention
Microsoft
41 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director