Automaker General Motors (GM) brought out quite a bit of news today, and much of it was focused on its electric vehicle (EV) operations.
One of the biggest changes was branding the battery line that powers GM’s electric vehicle (EV) lineup. The batteries will no longer be known as Ultium batteries. Nothing will actually change about the batteries themselves, or about the relevant supporting technology, but the name will change.
This is particularly unnerving, as General Motors put years—and millions of dollars—into promoting the Ultium brand. In fact, it picked up two different Super Bowl ads in 2021 and 2022 to promote the Ultium name only to wipe it out two years later. The name change comes as General Motors reconsiders its entire EV strategy as the market seems less amenable to battery-powered autos.
GM Investor Day
Meanwhile, GM CEO, Mary Barra staged an Investor Day event in Spring Hill, Tennessee, where she detailed that things were not all that dire for General Motors’ EV ambitions. Investors were growing concerned that slumping demand for electric vehicles, alongside what may be peak demand for gas trucks, could result in problems for GM. But Barra dispelled the notion of peak demand and noted that GM’s electric vehicle sales are on the rise.
Is General Motors Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 10 Buys, four Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 50.33% rally in its share price over the past year, the average GM price target of $56.60 per share implies 23.04% upside potential.
