Shares of General Motors (GM 1.70%) rose 5.6% on Monday, following positive analyst remarks.
GM is poised to emerge as a leader in autonomous and electric vehicles. So says Wells Fargo analyst Colin Langan, who placed an overweight rating and a $67 price forecast on the automotive giant's stock this morning. Langan's price target represents potential gains for investors of roughly 10%, compared with the stock's current price near $61.
Langa acknowledged that the GM still needs to restructure its international operations to further reduce costs and exit unprofitable markets. But he noted that the company's North American operations are generating profit margins that are particularly impressive given the current coronavirus-related industry downturn.
GM plans to invest over $27 billion in autonomous and electric-vehicle product development initiatives by 2025, which the company says will help it make significant progress toward its goal of selling only zero-emission vehicles by 2035.
Still, Tesla remains a formidable rival, and fellow auto titan Volkswagen recently unveiled an ambitious plan to become the largest seller of EVs by 2025. Yet GM's battery technology is impressive in terms of both performance and cost savings, and its new electrified lineup of popular vehicles could help to make it a powerful force in the rapidly expanding electric-vehicle market.