Shares of automotive major General Motors (NYSE:GM) are on the rise today after the company drove in better-than-expected first-quarter numbers.
Revenue surged 11.1% year-over-year to $40 billion, outperforming expectations by $610 million. EPS at $2.21 too cruised past expectations by $0.49. The company sold nearly 864,000 vehicles during the quarter and estimates a 1.3% gain in market share during this period as well.
The company is focused on achieving profitable growth with affordable models and expects 2023 EBIT to hover between $11 billion and $13 billion (earlier guidance between $10.5 billion and $12.5 billion).
Further, the company is banking on EV sales to boost its topline and plans to produce nearly 400,000 EVS between 2022 and H1 2024. But there’s more, GM is now teaming up with Samsung SDI on a $3 billion battery cell manufacturing facility in the U.S. The plant, which is expected to be operational by 2026 is expected to help GM boost its EV capacity to more than one million units per year in the North America Region.
Overall, the Street has a $51.27 consensus price target on GM, pointing to a hefty 49.5% potential upside in the stock. That’s after a nearly 14% slide in GM shares over the past year.
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