Breaking news from the vast expanse of the automotive world reveals General Motors (GM) embroiled in an enthralling saga of recalling 1,200 Cruise robotaxis to quell the sparks of a government probe operation. This narrative promises a fresh dawn for the legacy automaker, nudging its share prices upward in a serene Thursday afternoon trading milieu.
The Cruise arm of GM has acknowledged a need to yank back the robotaxis due to ‘hard braking’ concerns, persuading the National Highway Traffic Safety Administration (NHTSA) to close its probing eyes on Cruise’s autonomous driving mechanisms.
Furrowing its brow, Cruise pushed back against the recall necessity but decided to go with the flow to pacify the NHTSA. Commenting on the move, Cruise declared its steadfast commitment to fostering trust and opening the curtains wider on autonomous vehicle technology.
The Dawn of Big Battery Electric Vehicles
Amidst this maelstrom, GM paves its way towards dominion in the realm of “big battery EVs.” The term signifies electric vehicles wielding mammoth batteries, boasting a capacity of around 200 kilowatt-hours or beyond, designed to supercharge their range. However, navigating this terrain presents its unique set of challenges, nudging competitors like Ford to explore alternative avenues to enhance range.
Ford sets its sights on compact vehicles that eschew the colossal battery power, potentially heralding a seismic industry upheaval.
Deciphering GM’s Investment Prospects
Steering our gaze to the venerable Wall Street, analysts wield a Moderate Buy consensus on GM stock, doling out 11 Buys, two Holds, and two Sells in the past quarter. Reflecting on its robust 40.16% surge in the last year, the average GM price target of $57.50 per share kindles optimism, heralding a promising 23.42% upside.
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