General Motors Company (NYSE: GM) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company was the center of news surrounding a relatively large investment from SoftBank Vision Fund. Of course, the news of the investment excited investors who are now sending the stock screaming for the top. Today, we’ll talk about:
- The investment;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for with regard to GM ahead.
GM Heads Up On SoftBank Investment
As mentioned above, General Motors is having an incredibly strong start to the trading session this morning after announcing that it will be receiving a rather hefty investment. In a press release issued early this morning, the company announced that SoftBank Vision Fund will invest $2.25 billion in GM Cruise Holdings. The goal here is to further strengthen the company’s plans to commercialize autonomous vehicle technologies on a large scale. It was also announced that GM will be investing $1.1 billion in GM Cruise upon the closing of the transaction. In a statement, Mary Barra, CEO and Chairman at GM, had the following to offer:
Our Cruise and GM teams together have made tremendous progress over the last two years… Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion.
The above statement was followed up by Michael Ronen, managing partner at SoftBank Investment Advisers. Here’s what he had to offer:
GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion… The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage. We are very impressed by the advances made by the Cruise and GM teams, and are thrilled to help them lead a historic transformation of the automobile industry.
Finally, GM President, Dan Ammann, closed the statements with the following:
We’re excited to be joining forces with a tech leader who shares our belief that AV technology will change the world… We look forward to partnering with SoftBank as we work toward deploying this technology safely and in massive scale.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. With the investment from SoftBank, GM has additional support when it comes to the buildout of their autonomous vehicle program. So, it’s no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:32), GM is trading at $41.30 per share after a gain of $3.47 per share or 9.17% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GM. In particular, we’re interested in following the company’s autonomous vehicle program as it is garnering some serious investor interest. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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