General Motors (NYSE: GM) shares remain under pressure after the news that Dan Ammann, the CEO of GM’s autonomous vehicle division Cruise, would leave the company.
EV market leader in North America
General Motors continues to focus on speeding up electric vehicle adoption, and the company announced a plan to double its revenue to $280 billion by 2030.
The company started with deliveries out on the GMC Hummer EV Edition 1 Pickup and BrightDrop EV600 light commercial vehicle that were built on the Ultium Platform.
Ultium Platform is called the foundation for GM’s all-electric future, and according to the company’s management, it will be able to make nearly every type of vehicle.
Wedbush Securities reported that GM has the potential to become the EV market leader in North America, and the company should drive higher margins as EV costs decline.
Dan Ives, an analyst from Wedbush Securities assigned a buy rating on General Motors with a $100 price target and said that GM can ultimately convert 20% of its customer base to EVs by 2026 and higher than 50% by 2030. Dan Ives added:
Even if GM hits the natural speed bumps and has challenges along the way, the green tidal wave and EV conversion opportunities will change the long-term growth trajectory (and multiple) at the Detroit stalwart over the next decade, with overall revenue set to double by 2030.
GM’s goal to double revenue implies a tripling of earnings by 2030, which would make a case for the stock to be valued at over $100 today.
General Motors autonomous vehicle division Cruise is supposed to account for approximately $50 billion of that $140 billion in growth.
Last week, the company announced that Dan Ammann, the CEO of GM’s autonomous vehicle division Cruise, would leave the company, and this news negatively impacted the stock price.
GM didn’t provide a reason for the sudden departure, while some sources suggest that there may have been friction regarding a potential Cruise spin-off.
Dan Ammann was previously known for his successful investment banking career, while GM President Mark Reuss said that the Chief Technical Officer of Cruise Kyle Vogt would replace Ammann immediately.
Technical analysis
Data source: tradingview.com
General Motors shares remain under pressure, and if the price falls below $50 support, the next price target could be around $45.
The strong resistance level stands at $60, and if the price jumps above this level, it would be a “buy” signal, and we have the open way to the $65.
Summary
General Motors shares remain under pressure after the news that Dan Ammann, the CEO of GM’s autonomous vehicle division Cruise, would leave the company. General Motors continues to focus on speeding up electric vehicle adoption while Dan Ives, an analyst from Wedbush Securities assigned a buy rating on General Motors with a $100 price target.
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