Shares of General Motors (NYSE:GM) were trading higher on Wednesday. Investors are optimistic that a Democrat-controlled Senate could pave the way for new incentives for U.S. buyers of electric vehicles, in which GM is investing heavily.
Separately, GM executives said in a press conference on Wednesday that the company plans to share details of its upcoming electric vehicles at the virtual CES trade show next week.
As of 2 p.m. EST, GM's shares were up about 4.8% from Tuesday's closing price.
GM CEO Mary Barra has made no secret of the company's aggressive plans for electric vehicles (EVs). Over the last year, GM has revealed its own battery technology, shown a new modular platform for EVs, revealed the battery-powered GMC Hummer and Cadillac SUV, and said that many more EVs are on the way. GM is also preparing to build two EVs for Honda (NYSE:HMC), according to an Automotive News report. GM agreed last year to help Honda develop new EVs using GM's batteries and technology.
The incoming Biden Administration has pledged to push for legislation that will promote the adoption of EVs in the U.S., and the likely results from Georgia's special election mean that the chances of that legislation becoming law have improved.
Given that Barra and GM are all-in on electric vehicles, that's clearly good news for the company and its investors. And given that GM plans to share more details about its new electric vehicles next week, it's timely news as well.
All eyes (or at least many auto investors' eyes) will be on GM next week when it makes those presentations at CES. Investors will also want to tune in on Feb. 3, when GM is expected to share its fourth-quarter and full-year 2020 financial results.