General Motors (GM) - Get Report shares rose sharply Tuesday after the biggest U.S. automaker announced that its assembly plant in Spring Hill, Tennessee, will become the company's third electric vehicle production facility.
The Cadillac Lyriq will be the first EV produced at Spring Hill.
GM shares traded at $35.05, up 5.09%, on Tuesday. The stock has fallen 4% so far this year.
The Spring Hill plant joins ones in Detroit and Orion Township, Michigan, as EV production spots. GM also announced investments in five other Michigan plants, including the Lansing Delta Township plant and the Flint plant, for future crossover and full-size pickup production.
Production of the Cadillac XT6 and XT5 will continue at Spring Hill. The facility will build both traditionally powered Cadillac products and EVs.
The six U.S. facility investments total more than $2 billion, GM said, bringing the total amount it has invested or committed to invest in its U.S. manufacturing sites to more than $29 billion since 2009.
A total of $2 billion will be invested in Spring Hill to build EVs, including the Lyriq. Production of the next-generation GMC Acadia will move to Lansing Delta Township, representing an investment of more than $100 million.
GM will invest $32 million in Flint for future production of heavy-duty Chevrolet Silverado and GMC Sierra pickups.
Morningstar analyst David Whiston is bullish on GM. “We think General Motors' car models are of the best quality and design in decades,” he wrote in a commentary last month. He puts fair value for the stock at $50.