What to know about GM’s CES news

What to know about GM's CES news

DETROIT – Basic Motors made a number of bulletins on the CES expertise present Wednesday that traders ought to be aware of – particularly its future plans for electrical and autonomous autos.

GM CEO Mary Barra, who was one of many occasion’s headliners, unveiled the 2024 Chevrolet Silverado EV pickup that is anticipated to go on sale subsequent yr towards Ford Motor’s electrical F-150 and Rivian Automotive’s R1T, amongst others.

Response to the Silverado EV by Wall Avenue analysts has largely been constructive, nevertheless some questioned the dearth of choices and timing of the launch. Particularly, the corporate’s determination to solely launch with two trims, giving Ford’s F-150 Lightning that is launching this spring a one-year benefit.

Shares of GM closed Wednesday down 3.6% to $62.74 a share amid a broader market selloff. The inventory was largely unchanged by way of noon buying and selling Thursday.

Mary Barra, chief govt officer of Basic Motors Co., presents the brand new Silverado elective car throughout a live-streamed occasion on the CES 2022 commerce present in Las Vegas, Nevada, U.S., on Wednesday, Jan. 5, 2022.

Bridgett Bennett | Bloomberg | Getty Pictures

“Whereas the Silverado specs have been very strong, they arguably got here largely as anticipated, and we consider that traders could have been ‘promoting the information,'” Deutsche Financial institution analyst Emmanuel Rosner advised traders in a notice Thursday. He stated traders “might also have been shocked” by the launch cadence that features a fleet mannequin in spring 2023, adopted by a $105,000 client mannequin within the fall.

Credit score Suisse analyst Dan Levy known as the timing “considerably of a disappointment for traders” in a Tuesday notice.

However the Silverado EV wasn’t the one information traders ought to have paid consideration to Wednesday. Others included electrical van orders for GM’s BrightDrop unit, private autonomous car plans and timing on two new EVs. This is extra on these issues and others from GM’s CES presentation.


An EV600 all-electric light commercial vehicle purpose-built for the delivery of goods and services, built by GM’s electric commercial vehicle business, BrightDrop, is seen in Detroit, Michigan, in this undated photograph.

Brightdrop | Handout | via Reuters

Alan Wexler, GM’s senior vice president of innovation and growth, called such orders “critically important” for the business, which began delivering the first vans to FedEx last month.

“It’s a big market,” he told CNBC. “It’s important for our commercial segment because I think there’s going to be a halo that extends even into our traditional kind of fleet business as we talk to Walmart, FedEx, and others.”

$30,000 Equinox EV

In addition to revealing the Silverado EV for 2023, Barra said GM will offer EV versions of the Chevrolet Equinox and Chevrolet Blazer next year. The electric Equinox will start around $30,000, she said.

Wall Street analysts view the vehicles as GM’s first truly mainstream EVs on the company’s new Ultium batteries and platform.

GM will expand its Chevrolet EV lineup in fall 2023 to include the Equinox EV, starting at about $30,000.


“Both vehicles are critical, as they will represent GM’s first bid at high-volume EV entries, and GM’s first true shot against (Tesla’s) Model 3 / Y,” Levy said.

Barra showed images of the electric Equinox but did not disclose any additional details about that vehicle or the Blazer EV.

GM targets Tesla’s FSD

GM plans to begin offering a new “door-to-door” hands-free driving system with greater capabilities than Tesla’s “FSD” system beginning next year.

The Detroit automaker has said its new “Ultra Cruise” system will be capable of operating hands-free in 95% of all driving scenarios. That compares to Tesla’s “FSD” system that is designed to operate with drivers’ hands on the wheel.

Barra on Wednesday said the Cadillac Celestiq, an upcoming luxury electric sedan, will be among the first vehicles with the technology.

“Celestiq will be a true halo for Cadillac in every way,” Barra said, adding the Celestiq will be hand-built and available in “exclusive volumes.”


GM Cadillac Innerspace Halo Concept Car

Courtesy: GM

She also said that GM and Cruise plan to offer consumers personal autonomous EVs by mid-decade. The new timeline was accompanied by GM’s Cadillac luxury brand unveiling a sleek new personal self-driving EV concept called InnerSpace.

The concept is part of Cadillac’s “Halo Concept Portfolio” that started a year ago at CES with an urban air mobility vehicle and a shared autonomous shuttle. Such products could be crucial for GM to offer subscription services to create recurring revenue to assist in its plans to double revenue to $280 billion by 2030.

“We’re taking very much a holistic approach to how we think about subscriptions across our business,” Wexler said.

Cadillac InnerSpace concept


EV boat

Pure Watercraft electric pontoon boat is the first product to result from the company’s collaboration with General Motors.

Pure Watercraft

The deal is part of GM’s plans to offer its fuel cell and Ultium electric vehicle technologies to segments outside of automotive. It previously announced tie-ups or deals in locomotive, aerospace and defense.

– CNBC”s Michael Bloom contributed to this report.

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