Sometimes, the best things come out of collaborative efforts. Just ask anyone who thought that chocolate and peanut butter would never work together. And legacy automaker General Motors (GM) is out to make that happen by collaborating with Hyundai (HYMLF), a move which sent GM surging up nearly 3.5% in Thursday afternoon’s trading.
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The combination of GM and Hyundai, according to an Associated Press report, will see a push to not only develop new vehicles, but also fix up supply chain issues and make a push for greener technology. That is a point that has left GM a bit stymied in the past, as it, like many others, pushes back a future free of the internal combustion engine.
In fact, the green technology will not only be electric but also hydrogen. Raw materials for batteries, steel, and more will also be part of the cooperative effort. The two have a memorandum of understanding already in place, and will be working toward a full slate of agreements going forward.
And in Other Collaboration Effort News…
Meanwhile, Hyundai is not the only place where GM is working to collaborate. It is currently working another effort that would see it buy batteries made with Chinese technology. Specifically, technology created by CATL, though the assembly work would be done at a United States plant, presumably in a move to avoid tariffs.
GM is not the only one out to license CATL technology, either; Ford (F) is working to do that as well, and it even has a plant set up to build such batteries that goes all the way back to February 2023. This could put GM behind. And it all could be a moot point; there are signs the government is getting unhappy with all these Chinese connections, including the vice chair of the Intelligence Committee, Marco Rubio, who has offered concerns about the plan.
Is GM a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 11 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 38.9% rally in its share price over the past year, the average GM price target of $57.69 per share implies 24.92% upside potential.
