DETROIT – General Motors made several announcements at CES technology on Wednesday that investors should be looking at – in particular, its future plans for electric and autonomous vehicles.
GM CEO Mary Barra, who was one of the headliners of the event, unveiled the 2024 Chevrolet Silverado EV pickup, which is expected to go on sale next year alongside Ford Motor’s electric F-150 and R1T Rivian Automotive.
The reaction from Wall Street analysts to the Silverado EV was largely positive, with some doubting the lack of options and a launch date. In particular, the company’s decision to launch with only two trim levels gives the Ford F-150 Lightning, which will launch this spring, a one-year advantage.
GM shares were down 3.6% to $ 62.74 a share at close of trading on Wednesday, amid wider market sell-off. Shares remained virtually unchanged during Thursday afternoon trading.
Mary Barra, CEO of General Motors Co., unveils the new selectable Silverado vehicle during a live broadcast at CES 2022 in Las Vegas, Nevada, USA, Wednesday, January 5, 2022.
Bridget Bennett | Bloomberg | Getty Images
“While the Silverado’s specs were very good, they were probably in line with expectations, and we believe investors may have been ‘selling this news,’” Deutsche Bank analyst Emmanuel Rosner told investors in a note on Thursday. … He said investors “might have been surprised as well” by the pace of the launch, which includes a fleet model in the spring of 2023 and a $ 105,000 consumer model in the fall.
Credit Suisse analyst Dan Levy called the time “some disappointment for investors” on Tuesday.
But the Silverado EV wasn’t the only piece of news that investors should have taken notice of on Wednesday. Others included orders for electric vans for GM’s BrightDrop division, plans for personal autonomous vehicles, and a timeline for two new electric vehicles. Learn more about these and other things from GM’s presentation at CES.
GM’s BrightDrop EV division, which debuted a year ago at CES, announced deals with Walmart and FedEx on buy thousands of his electric vehicles.
Walmart has signed a new agreement with BrightDrop to reserve 5,000 electric vans, while FedEx has added an additional 2,000 vans to its previous order of 500. FedEx said the order could be increased to 20,000 electric vans.
This undated photograph in Detroit, Michigan shows the EV600, an all-electric light commercial vehicle specially built for the delivery of goods and services, and built by GM’s electric vehicle company BrightDrop.
Bright drop | Handouts | via Reuters
Alan Wexler, GM’s senior vice president of innovation and development, called such orders “critical” to the business, which began shipping its first vans to FedEx last month.
“This is a big market,” he told CNBC. “This is important for our commercial segment because I think there will be a halo that even spreads across our traditional fleet view when we talk to Walmart, FedEx and others.”
Equinox electric car for $ 30,000
Barra said GM will offer EVs for the Chevrolet Equinox and Chevrolet Blazer next year, in addition to unveiling the Silverado EV by 2023. The electric Equinox will cost about $ 30,000, she said.
Wall Street analysts view these cars as GM’s first truly mainstream EVs powered by the new batteries and the Ultium platform.
In the fall of 2023, GM will expand its Chevrolet EV lineup to include the Equinox EV starting at $ 30,000.
“Both vehicles are critical as they represent GM’s first bid for mass EV sales and GM’s first real shot against the Model 3 / Y (Tesla),” Levy said.
Barra has shown images of the electric Equinox, but has not revealed any further details about the vehicle or the Blazer EV.
GM plans to start offering a new hands-free door-to-door driving system with more capabilities than Tesla’s “FSD” system starting next year.
The Detroit-based automaker said its new “Ultra Cruise” system will be capable of hands-free operation in 95% of all driving scenarios. This can be compared to Tesla’s “FSD” system, which is designed to work with the driver holding his hands behind the wheel.
Barra said Wednesday that the Cadillac Celestiq, a future electric luxury sedan, will be one of the first cars to feature the technology.
“Celestiq will be a real halo for Cadillac in every way,” Barra said, adding that the Celestiq will be hand-assembled and sold in “exclusive quantities”.
On Wednesday, Barra confirmed two major plans for GM’s plans for autonomous vehicles, which the automaker has been investment of billions over several years.
Most notably, Barra said that GM-controlled Cruise’s autonomous vehicle division is expected to commercialize on-call services in San Francisco in the coming months. Cruzi applied for the final permit required to commercialize the activity in November.
GM Cadillac Innerspace Halo Concept
She also said GM and Cruise plan to offer personal, self-driving electric vehicles to consumers by mid-decade. The new schedule was accompanied by luxury brand GM Cadillac, which unveiled a sleek new concept for a personal unmanned electric vehicle called InnerSpace.
The concept is part of Cadillac’s Halo Concept Portfolio, which began a year ago at CES with an urban air vehicle and a shared autonomous shuttle. Such products could be critical to GM, offering recurring revenue subscription services to help its plans to double revenues to $ 280 billion by 2030.
“We take a very holistic approach to how we approach subscriptions across our entire business,” Wexler said.
Cadillac InnerSpace Concept
Aside from Barra’s keynote address, a GM-backed startup called Pure Watercraft that makes electric outboard motors for boats unveiled a new electric pontoon boat at CES.
GM acquired 25% of the Seattle-based company last year. GM will supply components under The $ 150 million deal with Pure Watercraft, a co-developer of new products, will provide engineering, design and manufacturing expertise to help the startup build new factories.
The Pure Watercraft electric pontoon boat is the first product created as a result of the company’s partnership with General Motors.
Clean jet ski
The deal is part of GM’s plans to offer Ultium fuel cell technology and electric vehicles to markets other than automotive. He has previously announced ties or deals in the locomotive, aerospace and defense industries.
– CNBC “s Michael Bloom contributed to this report.