May 15, 2024

(GM’s INVESTMENT IN EVs IS ATTRACTING ATTENTION)

May 15, 2024

Hello everyone,

General Motors could be a bright spot in an automobile industry challenged by a weakening electric vehicle market.

Slowing sales and sluggish adoption rates have driven down shares of EV leader Tesla by 31% this year, raising concerns over whether the Elon Musk-led company can build on its EV market share globally while also delivering on full self-driving initiatives.

Citigroup and Bank of America have General Motors in their sights as they believe this company can strengthen its position in EVs.

Shares of General Motors have climbed 26% in 2024, far outperforming the 9.5% gain in the S&P500. Last month, GM topped sales and earnings in the first quarter and raised its full-year outlook.

Citigroup has a buy rating on GM with a $96 per share price target, implying a 113% upside from Monday’s $45.17 close.

Also bullish on the stock is Bank of America. Analysts at the bank think GM’s forward guidance after its first-quarter results will prove too conservative. GM’s execution and strength in its Core business continue to enable the company to make investments in EVs [autonomous vehicles] and other areas to future-proof the business while continuing to return value to shareholders. BofA analysts have given GM a $75 per share price target implying a 66% upside over the next 12 months.

Recommended Action: Buy 50/60 out of the money June 2025 Bull Call LEAPS and/or buy the stock. GM stock price: $45.03

General Motors – committing to an all-electric future

Cheers,

Jacquie

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