What's Going On With General Motors Shares Today?

Zinger Key Points
  • GM Defense secures U.S. Department of Defense funding to develop commercial battery-electric technology for military platforms.
  • Wells Fargo analyst Colin Langan maintains a Underweight on the stock.

General Motors Company GM shares are trading lower on Tuesday.

Wells Fargo analyst Colin Langan maintains an Underweight rating on the stock and raises the price forecast from $30 to $32.

Last week, the company was reining in headlines for reportedly facing the maximum fine from California regulators due to delayed reporting of an accident involving one of its Cruise self-driving vehicles.

The incident has prompted increased scrutiny of autonomous vehicle safety, leading to a $112,500 penalty for the automaker, as per Reuters.

Today, the company said GM Defense will provide commercial battery-electric technology for future Military platforms.

The Operational Energy Innovation office of the U.S. Department of Defense will fund the project.

Utilizing the battery technologies of its parent company, GM Defense can help solve the Department of Defense’s energy and energy storage challenges. 

“The Department of Defense can benefit from billions of dollars in GM investments to develop and manufacture transformative battery technologies,” says Steve duMont, president of GM Defense.

The project will be supported by the University of Texas at Arlington (UTA) Pulsed Power and Energy Laboratory (PPEL) and Naval Surface Warfare Center Philadelphia Division (NSWCPD).

GM Defense is utilizing General Motors’ Ultium Platform propulsion architecture for evaluation and testing. This architecture offers power, range, and scalability that surpass General Motors’ previous hybrid or extended-range EV technologies Motors.

GM Defense previously announced its participation in the Defense Innovation Unit’s Jumpstart for Advanced Battery Standardization (JABS) project.

Yesterday, General Motors Financial, the automaker’s financing subsidiary, withdrew its application for deposit insurance, The Wall Street Journal reported.

The application for GM Financial Bank had been submitted to the Federal Deposit Insurance Corporation and Utah Department of Financial Institutions in late 2020.

Price Action: GM shares are trading lower by 2.94% to $46.70 at last check Tuesday. 

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