Global automaker General Motors Company (GM) in collaboration with LG Energy Solution is expected to announce investments of more than $6.5 billion in two Michigan electric vehicle (EV) plants this week, according to Reuters.
The investments will be directed towards the production of new electric trucks and battery plants. Shares of GM closed down 2.5% at $53.28 on January 21.
On Friday, the Michigan Strategic Fund report stated that they are expected to consider the GM and Ultium Cell LLC joint venture proposal to invest $6.5 billion and create 4,000 jobs at Lansing and Orion Township.
Friday’s news follows a Reuters report in December, which stated that GM and LG Energy Solution were in talks to set up a $2.5 billion battery plant near Lansing that would create 1,700 jobs. Both companies were expected to split up the costs.
Similarly, according to sources, GM is expected to invest nearly $4 billion in Orion Township to manufacture the new Chevrolet Silverado and GMC Sierra electric pickup trucks. A major plant expansion is expected to be completed by 2025.
These steps complement GM’s ambitious aim to achieve zero-emission vehicles by 2035. In June last year, the automaker said it would accelerate its electric and autonomous vehicle spending to $35 billion through 2025.
Company Comments
On Friday, GM issued a statement acknowledging the support, “related to two prospective projects that GM is considering in Orion Township and Lansing. Until these projects receive final approval, we have no comment on potential announcement timing.”
Wall Street View
The Wall Street community has awarded GM stock a Strong Buy rating consensus based on 11 Buys and 3 Holds. The average General Motors price target of $75.23 implies 41.2% upside potential to current levels. Shares have lost 12.9% year to date.
News Sentiment
TipRanks’ News Sentiment and Media Buzz Analysis shows the combined News Score based on GM’s News Sentiment and Media Buzz.
TipRanks data shows that the News Score for General Motors is currently Very Positive based on 95 articles published over the past seven days. 92% of the articles have a Bullish Sentiment compared to a sector average of 64%, while 8% of the articles have a Bearish Sentiment compared to a sector average of 36%.
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