- The shares of General Motors (NYSE: GM) have received a $33 price target from Wells Fargo. These are the details.
The shares of General Motors (NYSE: GM) have received a $33 price target from Wells Fargo. And Wells Fargo analyst Colin Langan adjusted the rating on General Motors from “Overweight” to “Underweight.”
The rating was adjusted due to massive increases in BEV costs. And Langan is considering whether going all-in on BEVs was a mistake for GM and Ford.
“The recent risk in nickel & lithium prices has increased the cost of batteries from the expected $105/kWh to $168/kWh… Unfortunately, before the price spike, the EPA announced aggressive fuel economy regulations that likely force BEV adoption. The OEMs are facing severe compliance cost headwinds through 2026, which limits their options. The main alternative chemistry is LFP, which has also seen a price increase; it also has lower density & currently has no US capacity,” said Langan in a research note.
Langan believes that the increased input costs would push unplanned costs for the Silverado EV by about $12.6K.
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