By Dhirendra Tripathi
Investing.com – General Motors (NYSE:) shares rose nearly 2% Wednesday as the carmaker’s ambitious $35 billion spending plan through 2025 on electric and autonomous vehicles buoyed sentiment for the stock.
A revised guidance for the first half of the year did its bit in the stock’s bump.
GM plans to sell more than 1 million electric vehicles every year by 2025.
The new spending is a 26% increase from plans announced late last year.
GM is playing catch-up in the EV space against the likes of Tesla (NASDAQ:) and Germany’s Volkswagen (DE:) (OTC:), exemplified by the second revision of its target, first set in March 2020 at $20 billion and then revised to $27 billion in November to this.
GM now expects its first-half EBIT-adjusted will be between $8.5 billion and $9.5 billion due to continued strong demand, better-than-expected results at GM Financial, and improved near-term production from the pull forward of semiconductors from the third quarter.
At its May 5 announcement of its first quarter performance, GM had guided for EBIT-adjusted of around $5.5 billion. Even at the lower end, the revised guidance is 54.5% higher.