On Tuesday, GM said it’s investing more than $2.2 billion in additional funds to boost electric-car production.
About $2 billion of that will go toward its first fully electric Cadillac, the Lyriq SUV, at its former Saturn plant in Tennessee, which will be its third U.S. plant aimed at EV production.
GM also will invest more than $100 million at its Lansing Delta Township plant to tool up for assembly of the next-generation Acadia crossover.
Additionally, GM will revive the storied Hummer brand by unveiling an all-electric GMC Hummer “supertruck” at 8 pm ET tonight. The Hummer will debut during the first game of baseball’s World Series, and can be watched here.
News that GM will produce an electric Hummer has been out for months. But so far, the only images available have been silhouettes.
The Hummer electric pickup takes on Tesla’s upcoming Cybertruck. It boasts 1,000 horsepower, 0-to-60 mph acceleration in three seconds, and 11,500 pound feet of torque, GM says.
Additionally, the electric vehicle will be one of GM’s first to feature the new, proprietary “Ultium” battery technology. That technology is expected to drive down costs, paving the way for profitable electric cars.
On Tuesday, Edmunds analyst Ivan Drury said “the irony is not lost on anyone that this former gas-guzzler is coming back as an electric vehicle.” Still, he expects the Hummer EV to “help push consumer acceptance of EVs into a new realm.”
GM Stock, Tesla Stock
Shares of General Motors popped 6.75% to close at 35.60 on the stock market today. GM stock topped a 33.43 flat-base buy point Friday and the buy zone extends to 35.10, according to MarketSmith chart analysis.
Ahead of earnings late Wednesday, Tesla stock slid 2% to 421.94 Tuesday, falling further below a 502.59 flat-base entry.
In a positive sign, the relative strength line for GM stock is at its best level since March’s coronavirus lows. The RS line, which gauges a stock’s strength against all stocks in the S&P 500, is the blue line in the chart shown.
As part of its shift to zero emissions and challenge to Tesla, General Motors is investing $20 billion in electric cars and self-driving vehicles through 2025, with plans for 20 new electric vehicles.
Despite the coronavirus pandemic, GM says it remains committed to its EV shift. The pandemic delayed the debut of the Lyriq and Hummer EVs, which are now expect to go on sale in 2022.
General Motors will make the Hummer EV at its iconic Hamtramck factory near Detroit, renamed Factory Zero. It also will eventually make its Cruise Origin self-driving EV there. By 2023, the factory will make only zero-emission vehicles, hence the new name.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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