The second quarter marked another positive step by General Motors (GM) towards the electric vehicle (EV) transformation, analysts at Wedbush believe.
“We believe this quarter was a big step forward for [CEO Mary] Barra & Co. as the company continues to focus on margins and growth targets during a crucial time for the industry, further proving to the Street that the EV story is well underway,” the analysts wrote in a note to clients.
“With 50,000 units in EV production completed in 1H23, the company is expecting to double this number in the second half of the year with five new EV models all beginning production.”
The analysts also highlighted the company’s plans to double its EV charging access through its collaboration with Tesla, integrating Tesla’s NACS port on its vehicles in 2025.
“Ultimately, GM customers will have access to 30,000 DC fast charging stations in early 2024, including the Ultium Charge 360 platform,” they noted.
On the company’s 2Q earnings, the analysts wrote that GM beat Street expectations and once again raised its guidance for the full year 2023.
GM's cost management shows strong discipline feeding to the bottom line, they added.
“Importantly the $2 billion of cost savings (by the end of 2024) remains ahead of schedule while also having an immediate effect on capital expenditure (capex) where GM expects $1 billion less in capex due to greater efficiencies,” they wrote.
Following GM's 2Q report, the analysts said they were maintaining their ‘Outperform’ rating on the stock with a $46 price target. GM shares traded hands at $37.90 at noon on Wednesday.
“In a very solid position coming out of this quarter, we believe GM is on track to hit its targets driven by strong management and pent-up demand,” they concluded.
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