Wedbush analysts Dan Ives and John Katsingris told investors in a note that GM's battery technology positions the Detroit company "to take advantage of a $5 trillion market emerging over the next decade."
GM has committed more that $27 billion to electric and autonomous vehicle product development, including $7 billion in 2021.
"By leveraging this technology, the legacy auto will be able to eat up market share against pure-play EVs in all aspects of the industry, although Tesla (TSLA) - Get Free Report will continue its iron-clad grip at the top of the EV pecking order," Ives and Katsingris wrote.
In April, GM's Ultim Cells joint venture said it planned to invest $2.3 billion in a second U.S. battery-cell factory, to be located in Spring Hill, Tenn., to drive up production of its EVs.
Wedbush maintained its outperform rating on the stock with a 12-month price target of $85 a share.
"Looking through near-term issues as we head into 2022/2023 we believe GM has a golden opportunity to lay the groundwork and ultimately convert 20% of its massive customer base to EVs by 2026 and north of 50% by 2030," Ives and Katsingris added.
GM’s also offers subscription support services like OnStar, a subsidiary that provides in-vehicle security, emergency services and navigation.
The investment firm said, "with the software and services business complementing the advancing battery technology, we believe GM is in a great position to monetize its EV vision."
"GM will be able to realize top-line growth from better product margins on each vehicle sold and will benefit significantly as profit margins from the subscription services will grow to record levels," Ives added in a note.
GM expects its in-car subscription services to generate nearly $2 billion in revenue this year, the company said last week.
Shares of GM at last check rose 1.5% to $58.97. Shares of Tesla were rising 1.8% to $805.81.