Why General Motors Shares Are Trading Higher Wednesday

General Motors Co. GM shares are trading higher on Wednesday. The rise comes after positive analyst notes from Wedbush Securities and RBC Capital, which reiterated their bullish stances on the automaker's future.

During the 2024 Investor Day, GM's management also provided crucial updates on its progress and vision, focusing heavily on its ongoing transition to electric vehicles.

What To Know: Wedbush Securities analysts Daniel Ives and John Katsingris reaffirmed their Outperform rating for General Motors, with a 12-month price target of $55.

They pointed to the automaker’s robust progress in its electric vehicle business as a key driver of the company’s future growth. As of the third quarter of 2024, General Motors produced 120,000 EVs in North America, with plans to hit 200,000 units by year-end.

The analysts noted that General Motor's strategic investments over the past few years are starting to pay off. The company has strengthened its internal combustion engine portfolio while scaling its EV production, managing to grow EV deliveries by 60% year-over-year.

Looking forward to 2025, Ives and Katsingris expect General Motors to narrow its EV-related losses by as much as $4 billion. The company’s upcoming EV models, such as the Cadillac Escalade IQ, next-gen Chevy Bolt and GMC Sierra EV Denali, are expected to drive further market share gains.

RBC Capital's Tom Narayan also reaffirmed an Outperform rating with a price target of $54, positioning General Motors as the legacy automaker best poised to capitalize on the shift to electric vehicles.

Narayan cited the company's strong standing in domestic battery production as a key advantage. Through its joint ventures (JVs) with LG and Samsung, General Motors is ramping up battery production, aiming to produce 500,000 batteries in 2024.

These efforts have helped lower the company's battery costs, which are now approaching parity with internal combustion engine vehicles.

Narayan believes General Motor's focus on affordability will be a significant growth driver, particularly with the anticipated release of the sub-$25,000 Chevy Bolt in 2025, made even more accessible by the $7,500 federal EV tax credit. He also noted that the company’s ability to produce batteries for its own vehicles and non-General Motors brands, such as Honda and Acura, further strengthens its competitive position.

GM Price Action: General Motors shares closed Wednesday up 4.17% at $47.03, according to Benzinga Pro.

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