General Motors' efforts to redefine itself as more than just an automaker are bearing fruit. Follow an extensive presentation this past week at the 2021 Consumer Electronics Show (CES) in Las Vegas, America's largest automaker's stock price soared.
GM's stock reached almost $51 a share on Wednesday, the highest it's been ever since it emerged from bankruptcy almost a decade ago. In 2009, the once "unsinkable" GM filed for Chapter 11 bankruptcy following years of mismanagement and an inability to identify the changing automotive landscape.
The "new GM" began trading in November 2010 with shares priced at $33. Wednesday's presentation represented just how far the company has come in a decade. Aside from the 2022 GMC Hummer EV, Chevrolet Bolt EUV, and Cadillac Lyriq, GM intends to launch 30 new EVs globally by 2025, including more than 20 for North America alone.
It committed an additional $7 billion last March on top of the already $20 billion earmarked for all-electric and autonomous vehicles through 2025. The CES presentation, among other things, provided a brief teaser of four all-new EVs whose details and brand identities remain top secret. Part of the company's rebranding efforts includes a new logo featuring an "m" designed to look like an electric plug. However, GM is still a long way from catching up to the mainstream auto industry's so-called public enemy No. 1: Tesla.
The California-based EV automaker is currently valued at around $806 billion. That's more than GM, Ford, FCA, Toyota, and VW Group combined. However, the market does not view Tesla as an automaker but rather a technology company with disruptor status.
GM, however, appears to be very much on the right track with its increased stock price serving as proof. It also sets an example for rivals, all of whom are in the process of electrifying their lineups as well. Ironically, a good chunk of GM's profits ($4 billion in Q3 2020) still come from thirsty trucks and SUVs. But GM is investing those profits directly into R&D efforts that will hopefully pay off in the years ahead.
Following its 2017 commitment to a zero-emissions future, GM developed from scratch its Ultium battery technology which, thanks to its innovative design, can be utilized on a range of vehicle types, from off-roaders to sports cars (like the Corvette, hint-hint).