Shares of General Motors (NYSE:GM) stock are in the spotlight today following a Yahoo! Finance interview with Cathie Wood. Specifically, the Ark Invest CEO said her firm “must not have a closed mind” on successful and innovative companies. This seems to include General Motors.
In the interview, Wood disclosed that Ark had recently met with GM CEO Mary Barra. The noteworthy investor explained that she is fascinated by how Barra is “really turning that ship around,” citing the CEO’s focus on “cruise automation.”
Here’s what investors should know about General Motors and its stock moving forward.
Ark Invest CEO Cathie Wood May Invest in GM Stock
This recent approval of GM stock seems to contrast with Wood’s comments this past January. Back then, General Motors had debuted its fully electric Silverado truck, which caused GM stock to rally. Cathie Wood called the rally as “ridiculous” because “electric vehicle sales represent only about 2% of traditional automakers’ sales.”
Wood has also raised concerns on the low gross margins of traditional automakers. In November, the Ark Invest CEO even went as far as saying that some traditional automakers could go bankrupt in the next five to 10 years due to competition with electric vehicles (EVs). Now, Wood seems to have done a complete pivot when it comes to General Motors.
Of course, Ark Invest has purchased GM stock in the past. The investment firm first purchased shares in the first quarter of 2017, then completely unloaded its position between 2018 and 2020. Today, Ark Invest does not currently hold any shares of the company. However, this may be subject to change if Wood acts on her recent comments.
To be sure, Ark is also still bullish on Tesla (NASDAQ:TSLA), one of GM’s biggest competitors in the EV space. Wood has lauded Tesla’s in-house artificial intelligence (AI) chip and vertical integration, which she believes give it a “tremendous advantage.”
What’s Next for General Motors?
By the end of 2025, GM plans on building 1 million EVs per year in North America. On Tuesday, the automaker also announced a multi-year deal with Glencore (OTCMKTS:GLNCY) to help in this endeavor. Glencore is a large supplier of cobalt, a component necessary for battery production. Specifically, the agreement will allow GM to obtain cobalt from Glencore’s Murrin Murrin mine in Australia, although details on volume and price have not been disclosed.
General Motors is expected to use this cobalt in its proprietary batteries for EV models of the Silverado and Hummer, among others. Furthermore, Glencore is still actively involved in supplying GM’s competitors.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.