Street May Not Expect GM To Be Able To Compete With Tesla In EV World But Wedbush Says Target To Double Revenue By 2030 ‘Achievable And Beatable’

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General Motor Co’s (NYSE:GM) ambitious target to more than double revenue by 2030 is achievable and beatable as the legacy automaker switches a majority of its customer base to electric vehicles over the coming years and aims to catch up with electric vehicle leader Tesla Inc (NASDAQ:TSLA), according to Wedbush Securities.

The GM Analyst: Wedbush analyst Daniel Ives has maintained a 12-month price target of $85 a share and an “outperform” rating on the stock.

The GM Thesis: Ives noted the automaker is putting aggressive financial goals that back up CEO Mary Barra’s electric vehicle transformation even as investors digest this revenue acceleration story.

GM on Wednesday told investors it would more than double revenue by 2030 to about $280 billion as it looks to convince investors that it would be on top of the U.S. electric vehicle market, ahead of rivals like Tesla Inc (NASDAQ:TSLA), the current leader, and Ford Motor Co (NYSE:F).

“We believe by 2026 GM will be able to convert 20% of installed base to EVs which remains the key to our re-rating thesis as part of this renaissance of growth happening in Detroit with the green tidal wave,” Ives wrote in a research note.

The analyst said that while the street remains “skeptical that GM can be successful in this EV” competition, he is confident investors would find more comfort as the automaker reveals more details on its electrical vehicle strategy just as Ford has been doing.

Ives defended the recent Chevy Bolt recall as a near-term black eye event for GM and that would gain more market share in the coming years. 

See Also: GM Raises 5-Year EV Investment Target To $35B, Following In Ford’s Footsteps

Why it Matters: GM plans to transition to an all-electric portfolio by 2035, the company told analysts at a two-day investor event that started on Wednesday in Michigan. By 2030, it aims to have more than half of its factories in China and North America to be capable of EV production.

Barra-led GM had in June said it would boost spending on electric and autonomous vehicles to $35 billion through 2025, a 30% jump over its previous forecast under a new plan.

Price Action: GM shares closed 0.75% lower at $53.93 a share on Wednesday. 

Photo: Courtesy of GM