The Detroit auto major paid Seattle-based Pure Watercraft $150 million in cash and payment-in-kind, which includes access to the automaker's components and assistance with manufacturing.
Pure Watercraft is now valued at $600 million, it said. Last December, Pure Watercraft said it closed a Series A financing of $37.5 million.
As for GM, it said it’s investing $35 billion through 2025 in electric and autonomous vehicle technology, “including work to improve performance and reduce battery costs, to become the market leader in EVs in North America.”
GM recently traded at $64.78, up 5%. It has jumped 33% in the past six months amid investor optimism about its electric vehicle push and its overall performance.
Morningstar analyst David Whiston puts fair value at $68 for GM.
“It’s not surprising that General Motors’ third-quarter results were held back by rising steel costs and the chip shortage, but it still posted adjusted diluted EPS of $1.52 to beat the Refinitiv consensus of $0.96,” he wrote last month.
“We [were] disappointed to see the stock fall about 5% after the release, but it appears that the fourth-quarter Refinitiv consensus for adjusted EBIT of $2.68 billion will not be met because GM is tracking for that metric to be as much as about $2 billion.
“We don’t see a reason to change our fair value estimate on fourth-quarter expectations falling short. … We think General Motors' vehicles are of the best quality and design in decades.”