JPMorgan analyst Ryan Brinkman raised the firm’s price target on General Motors (GM) to $63 from $49 and reiterates an Overweight rating on the shares. Yesterday brought a fresh reminder that GM is a “significant contender” in autonomous driving and the future robo-taxi business that could entail, as Microsoft (MSFT) joined GM and Honda in another funding round, Brinkman tells investors in a research note. The analyst sees the development as “positive on a number of fronts. It marks Cruise at a post-money valuation of $30B, up significantly from $19B prior, and “lays bare just how inexpensive GM’s core automotive operations really are,” says Brinkman. He values GM’s stake in Cruise at $19B, up from $11.9B prior. The analyst expects changes to way the investors are valuing the electric vehicle space. Investors will increasingly digest that Volkswagen and even Renault have now overtaken Tesla (TSLA) in electric vehicle sales in Europe, just as GM recently has in China with its Wuling HongGuang Mini electric vehicle, which moved 35,000 copies alone in December, says the analyst.
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