General Motors hits its highest price ever after going all in on electric cars
Shares of General Motors hit an all-time, intraday high on Tuesday.
The stock was trading as high as $43.70 on Tuesday after the company announced it would be focusing all its efforts on electric cars.
GM company hopes to be making 20 fully electric cars by 2023.
The gains followed a rally Monday, that came in part after a Deutsche Bank analyst also said a fully autonomous car from GM is closer than investors expect and that a spinoff of its tech-focused mobility unit could be in the cards.
GM rose 4.38% on Monday, closing at an all-time high of $42.15. It continued that rise on Tuesday and is on track to close at its highest-ever levels yet again.
In addition to its all-electric future, the company might be closed to releasing a fully autonomous car soon. According to Deutsche Bank, the company could release a self-driving car that could navigate complex urban areas without a backup driver in "quarters, not years." GM could use the self-driving tech to create a ride-hailing service with a natural monopoly, according to Deutsche Bank.
Morgan Stanley is bullish on the stock as well. Adam Jonas, an analyst at the bank, said his phone has been ringing more than normal with investors interested in GM. With a price target of $43 and a rating of buy, it looks like Tuesday's move has covered the remaining ground of Jonas' previously bullish call. He said multiples would have to expand for the price to continue higher as the company is maxing out its earnings potential in Jonas' view.
GM is up 23.2% this year.
