Business

GM Shares Soar on Electric-Vehicle Spin-Off Speculation


(Bloomberg) -- General Motors Co. shares rose to their highest level in almost three months after a Deutsche Bank analyst speculated the automaker could spin off its electric-vehicle unit to create more value.


That came after Deutsche Bank’s Emmanuel Rosner wrote in a report published Monday the automaker could be worth as much as $93 a share if GM spins out its electric-vehicle business.


GM has pondered such a move recently, Bloomberg reported earlier this month, reviving an idea first mulled internally two years ago.


GM’s core business selling gasoline-powered sport utility vehicles and pickup trucks is generating cash but viewed as being in long-term decline and is less exciting to investors than the company’s electric-car plans, it said.


By spinning off its EV business, GM could get the kind of momentum enjoyed by Tesla and a handful of startups that have lured capital despite their having no vehicles on the market.


Battery-powered cars have caught the imagination of investors in recent weeks, sending shares of Tesla to successive record levels and boosting the value of electric startups such as Nikola Inc., Fisker Inc. and Lordstown Motors Corp., all of which took a fast track chasing public listings after being acquired by special purpose acquisition companies.






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