General Motors Company’s (GM - Free Report) plans to produce additional electric vehicles (EVs) in China have received a jolt, per Wall Street Journal. This auto giant has been embroiled into trouble as the batteries made in China failed in meeting the performance and safety standards at the time of testing.
Notably, in June this year, General Motors disclosed its plans to deliver 10 new EV models in China by 2020. This auto giant has also announced that between 2021 and 2023, it is going to raise the number of EV models to 20 in China. In fact, the company has already launched Cadillac CT6 Plug-In, Buick Velite 5 extended-range EV and Baojun E100 EV in China. But, as stated by Wall Street Journal, the company’s plans to launch the Velite 6 plug-in hybrid EV in China have been impacted due to battery problems.
China is playing a pivotal role in the transition toward zero emissions future. Like many other automakers, General Motors has also been actively involved in this transition process. This Detroit, MI-based automaker is going to continue expanding its EV portfolio in the mainland and it has stated that the battery issue is not likely to have much impact on its EV building plans in China.
Over the past three months, shares of General Motors have underperformed the industry it belongs to. Over this time frame, shares of the company have decreased 15.8%, whereas the industry decreased by 5%. Also, the Zacks Consensus Estimate for both the current quarter and current year earnings has decreased over the past month.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and AB Volvo (VLVLY - Free Report) . While Fox Factory sports a Zacks Rank #1 (Strong Buy), both Honda and Volvo carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 16.8%. Over a year’s time, shares of the company have gained 64.5%.
Honda has an expected long-term growth rate of 3%. Shares of the company have risen 9.2% in the past year.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 3.6%.
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