General Motors is eager to convince the world that it is at the forefront of electric and self-driving vehicle technology and that like Tesla, its share price should be on the rise.
GM chief executive Mary Barra and top company executives recently hosted an investor conference in New York aimed at convincing potential shareholders that GM is a wise investment, Reuters reports.
In the decade since GM’s initial public offering, shares in the company have remained relatively flat at about $35, valuing the company at roughly $49 billion. As early as this week, Tesla’s value soared to beyond $160 billion before its shares fell by almost 20 per cent on Wednesday.
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Asked about the recent spike in Tesla’s stock, GM chief financial officer Dhivya Suryadevara said, “We believe we’re a compelling investment opportunity. From a share-price standpoint, we’re very bullish on the future.”
“The market’s got it wrong,” co-portfolio manager with Levin Easterly Partners, who owns GM shares, Chris Susanin said. “GM should be the $150 billion market cap, not Tesla.”
Most of GM’s profits come from big pickup trucks and SUVs sold in the United States but the automaker isn’t holding back with its push into the EV space, with plans to spend more money developing electric vehicles than ICE-powered vehicles over the next five years.
GM made a host of other announcements during the investor conference. For example, president Mark Reuss said GM will offer its Super Cruise partially automated driving system on 22 models by the end of 2023. Barra also revealed GM intends on sourcing all of its global electricity from renewable sources by 2040, a decade sooner than first announced.
