Will electric vehicles (EVs) be able to power an entire home before the end of the decade? That question might have seemed absurd a few years ago. But General Motors (NYSE:GM) is focused on exactly that. In fact, the automotive industry leader has announced that it aims to equip all its EVs with “bidirectional vehicle-to-home (V2H) charging capabilities” within the coming years. This would represent a significant step forward for both the clean energy and EV sectors. As companies embrace a sustainability-centric future, the need for this type of technology will only increase. If General Motors can corner this lucrative market, it could mean a significant boost for GM stock.
Shares of the auto giant are down today amid market volatility, but that doesn’t mean that investors should be ignoring this important news. Let’s dive deeper into General Motors’ plans for changing the future of home power solutions.
What’s Happening With GM Stock
This isn’t a great day for EV stocks or for automakers in general. Market momentum is negative, and it is pushing many industry leaders down. As of this writing, GM stock is down almost 1% for the day though its current trajectory shows signs that a rally is likely. While it’s been a difficult month for the auto giant, this new focus could help the company turn around in the second half of the year. For investors, this means a key opportunity to buy this undervalued EV stock on the current dip before it rebounds.
What exactly is this futuristic technology that GM is focused on delivering to your driveway? As the name implies, bidirectional charging refers to a flow of power that goes two ways. It transfers the energy stored in the battery of a parked EV to a home, acting as a backup energy source during a power outage. This may not sound like much electricity. But according to Driivz, it could power a home or small business for several days if necessary. As The Verge reports:
“The idea is to use bidirectional charging equipment to push and pull energy from electric vehicles at any given time. In essence, it treats high-capacity lithium-ion batteries not only as tools to power EVs but also as backup storage cells to charge other electric devices, an entire home, or even to send power to the electrical grid for possible energy savings.”
The outlet also notes that equipment won’t be a problem for General Motors customers. Its subsidiary GM Energy is producing V2H home charging kits that can allow users to set up charging between their EVs and homes. Prices have not been released yet, but interested buyers can expect them this year.
Why It Matters
This isn’t the first reason to bet on GM stock for EV market exposure. American drivers have trusted the legacy automaker for generations. Now it has the distinct advantage of taking brands that consumers love and turning them electric. In just 2023, drivers can expect to see multiple electric Cadillacs and the new Chevy Blazer EV. The power of GM’s brand portfolio should not be underestimated.
Now the company is taking its offerings a step further, though, and venturing into powering homes and businesses. If done successfully, this will help General Motors compete with EV leader Tesla (NASDAQ:TSLA), further chipping away at its market share. GM wants to release its first EVs with V2H powers by the 2026 model year. That means investors have the opportunity to double down on shares now before they rebound.
On the date of publication, Samuel O’Brient 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.
