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General Motors (GM) Gets Above 65K Reservations for Hummer EV

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General Motors (GM - Free Report) reported that it has received more than 65,000 reservations for its electric GMC Hummer pickups and SUVs. Per management, the figure achieved is higher than expected. The automaker aims to bolster production to meet growing demand.

The GMC Hummer EV is a new all-electric version of the popular gas guzzler of 2010 and was launched in the fall of 2020 as part of GM’s Everybody In electrification strategy. The Hummer EV pickup is a flagship vehicle for General Motors as it is the first to include next-generation battery cells and platform known as Ultium.

In late December 2021, the first deliveries of the Hummer EV pickup rolled out for reservation holders and GMC delivered just one electric Hummer last year.

At that time, GMC had received more than 60,000 Hummer EV reservations and in just less than two months later, it got an additional 5,000 reservations. The percentage of reservations converted into orders stands at 95%, which substantially exceeds expectations.

General Motors has been expediting production for a while to accelerate deliveries. Upping production includes obtaining additional supplies of key components, including battery cells.

Newer reservations are uniformly distributed between the Hummer pickup trucks and SUV to ensure equitable production.

GM is still in the initial phase of production of the Hummer pickup at a plant in Detroit.

Management reported that General Motors is on track to produce more vehicles than it had originally planned to.

The high price of the vehicle is keeping volumes lower than other trucks. Currently, a limited Edition 1 launch version of the pickup starts at $110,295. Other lower-priced versions, ranging from about $80,000 to $100,000, will follow in due course. The next Hummer to come after the initial Edition 1 version will be the Hummer EV³??, scheduled to be unveiled this fall at a starting MSRP of $99,995.

The resounding demand surge is testimony to the raging popularity that the vehicle promises to bring forth.

GM’s shares have lost 19.5% over the past year against the industry’s 17.5% rise.

Zacks Investment Research
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Zacks Rank & Key Picks

GM currently has a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) , LCI Industries (LCII - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Harley-Davidson has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 28.1% upward in the past 60 days.

Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 77.6%. The stock has gained 0.5% over the past year.

LCI Industries has an expected earnings growth rate of 26.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15% upward in the past 60 days.

LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average surprise being 12.9%. The stock has declined 16.2% over the past year.

Tesla has an expected earnings growth rate of 42.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 4.5% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 33.3%. The stock has soared 64.7% over the past year.

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