If you think electrification is the only thing GM is doing, you may be surprised with its progress in the autonomous vehicle (AV) technology space. The company has partnered with Microsoft ( NASDAQ: MSFT ) in leading a $2 billion investment round in self-driving car startup Cruise LLC. This is a deal that could potentially bring the software giant's cloud and edge computing capabilities to the venture.
Now, as GM is transforming itself, investors may begin valuing it like an EV or AV stock. For instance, Morgan Stanley analyst Adam Jonas increased his price target for GM stock to $80. That represents an upside of more than 45%. Jonas believes the value of the new initiatives is more than sufficient to offset the decline in the old business.
F Stock Or GM Stock?
All in all, both companies look like safe investment bets for electric vehicles. Why? If you're investing in high-flying EV stocks, you could potentially be buying into a classic stock market bubble. It might not end well. However, if you are buying either F stock or GM stock, you are looking at an established automaker with high exposure to EV and AV technology.
Of course, chip shortages may have complicated the near-term sales outlook. After all, nobody likes to see production delays, which have affected both companies. But one thing we can be relatively sure of is that these companies have undeniable potential in the EV space. Right now, GM stock may appear to be a more favorable EV stock considering its existing line-up of EVs is selling well in the U.S. That provides support to the viability of their ambition.
On the flip side, you can say that Ford has tremendous potential to become a force to be reckoned with its major restructuring and the introduction of more technology into its vehicles. As the iconic American auto pioneer continues to keep up with the times, will F stock see brighter days ahead?
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