Mary Bara, the Chief Executive Officer of General Motors Co, has revealed two of the major deals the company has signed off. This move was made to ensure the investors’ concerns that they are not going to be stuck around the place while companies like Tesla and other electric vehicle companies are changing the conventional way of car manufacturing.
However, the investors of the company want GM to go further. GM experienced a jump of 10% in their shares, which in turn proved to be a great help for the stock to top its post financial crisis 2010 Initial Public Offering of $33. The investor even wants the CEO to split up the company, thus making it to entity, the EV sector assets of which may can be valued at higher levels similar to that of tesla.
GM has also recently announced their 11% stake in manufacturing electric trucks for Nikola Corp. The company will also help EV start-ups with batteries and hydrogen fuel cells. A collaboration with Japanese auto maker Honda Motor Co Ltd was also recently announced. Both the companies will share platforms like EV segment, which indeed will save billions of dollars for both of them.
“It’s a very strong proof point of our commitment to an all-EV future and really creating a platform that others can use that’s going to give us scale and help us drive efficiency costs down,” she told reporters on a conference call.
Bara has been constantly trying to fund the electric vehicle research through skyrocketing internal fuel combustion models. All these efforts have cemented the company’s foot in EV sector firmly.
According to a survey, 72% of investors of GM believed that the company would eventually drop the EV production plans and half also thought that it all will end up by 2021.
Adam Jonas, an analyst from Morgan Stanley have been constantly be pushing the idea of GM’s separation for quite a few years now stated that whether it may be a spin-off or other business strategy, the investors are looking for something different.
“If there’s an opportunity to capitalize on these assets, strategically, they should do it because the market’s certainly not giving them much value for a very improved automotive business,” said Michael Razewski, a partner with investment adviser Douglas C. Lane & Associates, which owns GM shares.