Deutsche Bank analysts estimate that the separate valuation of GM's electric vehicle business can reach $654.38+0.5 billion to $20 billion, and the highest may reach $654.38+0 billion. In sharp contrast, GM's current total market value is $43 billion. Analysts believe that splitting the electric vehicle business can bring more value to GM.
At present, investment bankers, including Deutsche Bank analysts and Morgan Stanley analysts, tend to split GM's electric vehicle business. Morgan Stanley analyst Adam? Jonas also gave similar advice. He said: "The two companies after the spin-off can liberate each other's obstacles in effective capital allocation and talent development."
It is worth mentioning that recently, General Motors Chief Financial Officer Divya? Suryadevara announced that he would leave. General Motors said that Suryadevara submitted his resignation application on August 6th. John, Chief Financial Officer of General Motors North America? Stapleton. /kloc-temporarily took over as CFO of GM from August 0/5. During his tenure, Suryadevara acquired Cruise, a self-driving startup of General Motors. Automation and 20 18 reorganization plan played a key role.
At present, facing the pressure of Wall Street to split the electric vehicle business, GM seems to be at the crossroads of making major decisions such as acquiring Cruise or restructuring.
General CEO Mary Bora (Mary? Barra)
In this regard, General Motors CEO Mary Bora (Mary? Barra) conveyed a positive attitude, saying that GM will make necessary changes as long as it can promote the value of the company and shareholders.
Why do investment banks give such radical spin-off suggestions? It can be seen from Tesla's recent performance in the US stock market that the capital market is madly chasing electric vehicle concept stocks. On Monday, Tesla's market value rose by 1 1%, setting a new record of $342 billion.
In contrast, according to the latest financial data, GM's net income in the second quarter was $654.38+$68 million, down 53% year-on-year; The net profit was $800 million, a year-on-year decrease of132%; The adjusted profit before interest and tax was USD 500 million, down 1 18% year-on-year.
On March 5th this year, GM first demonstrated the core of its electrification strategy-modular drive system and the third generation global electric vehicle platform BEV3 (battery? Electric? Vehicles). Mary Bola said at the press conference: "The electrification strategy we have established covers many brands and market segments, and its economies of scale can be comparable to the full-size pickup truck business, and it is more flexible."
In terms of electrified products, GM laid out Cadillac based on the new Ultium battery system. LYRIQ、GMC？ Hummer electric pickup truck and other products.
In fact, many companies in the industry have split the electric vehicle business into independent entity operations. In China, Jianghuai Automobile, BAIC, Chery, Great Wall and Geely all independently develop their new energy business, which is different from the traditional fuel vehicle business in product development, sales channels and marketing. Will GM split the electric vehicle business according to the wishes of capital? We will continue to pay attention.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.