Detroit’s General Motors shares climb 6% on plans for e-vehicle delivery business

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Detroit’s General Motors shares climb 6% on plans for e-vehicle delivery business

Nearly a month after the Detroit-based leading US automaker General Motors had vowed to take on Tesla Inc. with an increase in spending on its e-vehicle production lines, GM Chief Executive Mary Barra finally details a plan to make an entrance into the high-flying e-vehicle delivery business on Tuesday, leading to a sharp spike in General Motors Co.

shares’ prices. In point of fact, following Tuesday’s announcement, NYSE-listed shares’ prices of General Motors Co surged skyrocketed as much as 6.29 per cent to $47.82 apiece, while in the after-market trading, GM stocks were last trading 3.45 per cent higher to $49.47 per share, marking up the Detroit, Michigan-headquartered American multinational carmaker’s highest level since its post-bankruptcy Initial Public Offerings back in the 2010s.

GM unveils new BrightDrop delivery business, shares soar

In actuality, GM Chief Executive Mary Barra had been quoted saying earlier in the day that the former No. 1 US passenger carmaker was mulling an option to deliver its BrightDrop commercial delivery vans to FedEx later this year, which in effect would align the automaker with cross-town rival Ford Motor Co alongside smaller start-ups likes of Arrival, Hyundai-backed Canoo as well as Ford-backed Rivian.

On top of that, GM said in a separate statement earlier in the day that a pandemic-led uptick in parcel and food delivery business would lift the ballooning industry’s valuation up to $850 billion by 2025, a sector which the e-vehicle market leader Tesla Inc.

had yet to tap into. Speaking in the day’s virtual presentation, Barra also had added that its new e-vehicle commercial van, BrightDrop, would offer wide-ranging services to big-league logistics and delivery customers like of FedEx, while GM would step up its spending on self-driving and e-vehicles to at least $27 billion by 2023, up about 35 per cent from a prior announcement.

Later last year, the Detroit automaker said in a statement that it had been working out a plan to roll out as many as 30 e-vehicle models by 2025 with an annual sales target of 1 million units in China and the US.