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General Motors' EV Plans Present 'Golden Opportunity': Wedbush

General Motors shares advanced after Wedbush analysts expressed confidence in the Detroit stalwart's shift toward electric vehicles.

General Motors  (GM) - Get Free Report on Tuesday received a bullish review from Wedbush analysts, who said its electric-vehicle plans present a "golden opportunity" for growth in the sector.

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.