General Motors Company (NYSE:GM) is taking a big stride toward its goals of an all-electric future, per Reuters. The auto giant has plans of rolling out two new electric vehicles (EVs) in the next 18 months. Also, it intends to add more than 20 electric or hydrogen fuel cell vehicles in its lineup by 2023. With this, the number one U.S. automaker joins several European and Japanese peers, who have vowed to speed up development of EVs.
Also, the automaker plans to increase the number of electric fast-charging stations in the United States in order to take on its EV competitor Tesla Inc (NASDAQ:TSLA). The charging stations built by General Motors would be used by EVs manufactured by other companies. Notably, all the 951 fast-charging stations manufactured by Tesla can only be used by owners of Tesla vehicles.
Apart from this, the recent proposals by the Chinese and a few European governments to completely ban internal combustion engines by 2030 or 2040, has prompted a number of global vehicles manufacturers, including General Motors to invest more in EVs.
General Motors’ Advantages
General Motors is foraying into EV drive using cash derived from the sale of gasoline-fueled trucks and sport utility vehicles in the United States and China.
The company has partnered with Seoul, South Korea-based battery maker LG Chem to manufacture Bolt battery system. It also intends to launch more than 10 new hybrid or electric vehicles aimed for the Chinese market by 2020. The company also hinted at taking new steps for expanding infrastructure for quick recharging of EVs.
In the last three months, shares of General Motors have outperformed the industry it belongs to. The company’s shares have increased 18.5%, while the industry gained 6.2%.
Both General Motors and Tesla currently carry a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Toyota Motor Corp (NYSE:TM) and Daimler AG (OTCMKTS:DDAIF). While Toyota sports a Zacks Rank #1 (Strong Buy), Daimler holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has an expected long-term earnings growth rate of 7%.
Daimler has an expected long-term earnings growth rate of 2.8%.
Will You Make a Fortune on the Shift to Electric Cars?
Here’s another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It’s not the one you think.
