We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) Boosts EV Battery Safety With ALGOLiON Buyout
Read MoreHide Full Article
General Motors (GM - Free Report) recently made a strategic move to enhance its electric vehicle (EV) technology. The company announced the acquisition of ALGOLiON, an Israel-based software startup, which specializes in detecting potential hazards in battery cells. This comes at a crucial time when automakers globally are investing billions in the production of EVs, and are in a race to develop cost-effective and efficient batteries that can power these vehicles for longer durations.
ALGOLiON, founded in 2014 by Niles Fleischer and Alex Nimberger, has developed state-of-the-art battery analytics and prediction software that is expected to significantly improve GM's EV performance. The software uses data streams from EV battery management systems to identify anomalies in cell performance and provide early detection of battery hazards, including "thermal runaway propagation events," which is a rapid increase in temperature that can lead to fires in EVs.
The acquisition of ALGOLiON is a crucial step for GM in improving its battery standards, a move urged by safety authorities following several incidents of vehicles catching fire due to defective battery modules. GM experienced the firsthand impact of such hazards, having issued two recalls for thousands of Chevrolet Bolt EVs due to battery fire risks. The recall and subsequent halting of production at its Orion assembly plant in Michigan caused a significant drag on GM's earnings and reputation.
With ALGOLiON's software, GM hopes to spot even tiny changes that could affect battery health weeks earlier than other methods. This capability will provide a valuable tool for the company to mitigate battery-related risks and protect its reputation in the increasingly competitive EV market.
The team of ALGOLiON, including its founders, will join GM's Technical Center in Herzliya, Israel, where more than 850 employees are already working on technological advancements. This acquisition was led by GM's newly formed Technology Acceleration and Commercialization organization, whose aim is not only to seek potential acquisition targets but also to explore investment opportunities and partnerships that can further strengthen GM's position in battery development.
GM's acquisition of ALGOLiON signifies a clear strategic shift toward ensuring safety and efficiency in EV battery technology. As the EV market continues to grow, GM's investment in advanced battery software could prove to be a significant competitive advantage. The move also reflects GM's commitment to investing in advanced technologies and partnerships to stay at the forefront of the evolving automotive industry. The legacy automaker currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in the auto space include Honda (HMC - Free Report) , Subaru Corp (FUJHY - Free Report) and Li Auto (LI - Free Report) , each carrying a Zacks Rank #1.
The Zacks Consensus Estimate for HMC’s current fiscal year sales and EPS estimates implies year-over-year growth of 16.5% and 30.7%, respectively. The company’s fiscal 2024 EPS has been revised upward by 9 cents in the past 30 days. Honda’s fiscal 2025 EPS is pegged at $4.16/share, suggesting year-over-year growth of 5.1%. The stock has gained more than 32% year to date.
The Zacks Consensus Estimate for FUJHY’s fiscal 2024 EPS is pegged at $1.29/share, implying an uptick of 33% year over year. The consensus mark for fiscal 2024 EPS has been revised upward by 19 cents in the past 30 days. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $1.41/share, implying 10% growth year over year. The stock has gained more than 24% year to date.
The Zacks Consensus Estimate for LI’s current-year sales and EPS estimates implies year-over-year growth of 131% and 2,400%, respectively. The consensus mark for the 2023 bottom line has improved from a loss of 8 cents/share to a profit of 25 cents a share over the past 60 days. The company’s stock has gained more than 70% year to date.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors (GM) Boosts EV Battery Safety With ALGOLiON Buyout
General Motors (GM - Free Report) recently made a strategic move to enhance its electric vehicle (EV) technology. The company announced the acquisition of ALGOLiON, an Israel-based software startup, which specializes in detecting potential hazards in battery cells. This comes at a crucial time when automakers globally are investing billions in the production of EVs, and are in a race to develop cost-effective and efficient batteries that can power these vehicles for longer durations.
ALGOLiON, founded in 2014 by Niles Fleischer and Alex Nimberger, has developed state-of-the-art battery analytics and prediction software that is expected to significantly improve GM's EV performance. The software uses data streams from EV battery management systems to identify anomalies in cell performance and provide early detection of battery hazards, including "thermal runaway propagation events," which is a rapid increase in temperature that can lead to fires in EVs.
The acquisition of ALGOLiON is a crucial step for GM in improving its battery standards, a move urged by safety authorities following several incidents of vehicles catching fire due to defective battery modules. GM experienced the firsthand impact of such hazards, having issued two recalls for thousands of Chevrolet Bolt EVs due to battery fire risks. The recall and subsequent halting of production at its Orion assembly plant in Michigan caused a significant drag on GM's earnings and reputation.
With ALGOLiON's software, GM hopes to spot even tiny changes that could affect battery health weeks earlier than other methods. This capability will provide a valuable tool for the company to mitigate battery-related risks and protect its reputation in the increasingly competitive EV market.
The team of ALGOLiON, including its founders, will join GM's Technical Center in Herzliya, Israel, where more than 850 employees are already working on technological advancements. This acquisition was led by GM's newly formed Technology Acceleration and Commercialization organization, whose aim is not only to seek potential acquisition targets but also to explore investment opportunities and partnerships that can further strengthen GM's position in battery development.
GM's acquisition of ALGOLiON signifies a clear strategic shift toward ensuring safety and efficiency in EV battery technology. As the EV market continues to grow, GM's investment in advanced battery software could prove to be a significant competitive advantage. The move also reflects GM's commitment to investing in advanced technologies and partnerships to stay at the forefront of the evolving automotive industry. The legacy automaker currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in the auto space include Honda (HMC - Free Report) , Subaru Corp (FUJHY - Free Report) and Li Auto (LI - Free Report) , each carrying a Zacks Rank #1.
The Zacks Consensus Estimate for HMC’s current fiscal year sales and EPS estimates implies year-over-year growth of 16.5% and 30.7%, respectively. The company’s fiscal 2024 EPS has been revised upward by 9 cents in the past 30 days. Honda’s fiscal 2025 EPS is pegged at $4.16/share, suggesting year-over-year growth of 5.1%. The stock has gained more than 32% year to date.
The Zacks Consensus Estimate for FUJHY’s fiscal 2024 EPS is pegged at $1.29/share, implying an uptick of 33% year over year. The consensus mark for fiscal 2024 EPS has been revised upward by 19 cents in the past 30 days. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $1.41/share, implying 10% growth year over year. The stock has gained more than 24% year to date.
The Zacks Consensus Estimate for LI’s current-year sales and EPS estimates implies year-over-year growth of 131% and 2,400%, respectively. The consensus mark for the 2023 bottom line has improved from a loss of 8 cents/share to a profit of 25 cents a share over the past 60 days. The company’s stock has gained more than 70% year to date.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.