GM Split Into Electric Vehicle Maker and The Other
General Motors should spin off its electric vehicle operations into a stand-alone company, which would unlock "considerable" shareholder value, give the new company access to cheap capital to fund expected growth, and provide the ability to attract and retain talent, Deutsche Bank analysts say, adding that GM may be considering the option.
Tesla, Nikola and others have reaped the benefits of such market attention, which stands "in sharp contrast with depressed legacy automakers' value... This is particularly striking in the case of GM and VW, which actually have strong EV capability and upcoming product plans," Deutsche Bank says.
Such a spinoff "could force the market to recognize its robust EV technology and upcoming (vehicle) lineup," the firm says in reiterating its Buy rating on GM and maintaining its stock price target at $33, adding an EV spinoff "could boost it considerably further."