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General Motors to Partner With Bechtel for EV Charging Points

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General Motors Company (GM - Free Report) is likely to set up charging stations for electric vehicles (EVs) in collaboration with Bechtel Corporation, per Reuters. The fast charging stations will be constructed across the United States, for which the probable alliance is currently looking for investors that can fund the project.

The companies plan to set up charging stations in urban and inadequately served areas beside setting the posts in interstates, which will be helpful for long-distance travel. Adequate availability of charging posts will reduce customer concerns related to the use of EVs and motivate them to adopt the technology. Per General Motors, the partnership is currently at its Memorandum of Understanding (MoU) stage. The business structure has not been finalized yet.

The partnership with Bechtel is not the first of its kind for General Motors. In January 2019, the company announced a similar collaboration with EVgo, ChargePoint and Greenlots, the three leading EV charging network companies. In April 2019, General Motors’ car-sharing platform, Maven introduced a network of fast charging hubs with EVgo for Maven Gig's shared-use vehicles.

General Motors Company Price and Consensus

 

General Motors is moving toward electric future, with the plan to debut roughly 20 electric vehicles by 2023. These collaborations to increase charging station counts in the United States is expected to benefit the company. Proper accessibility of EV charging points might attract more customers to opt for EVs rather than gas guzzling vehicles.

Price Performance

Over the past three months, shares of General Motors have lost 11.2% compared with the industry’s decline of 12.3%.

 


Zacks Rank & Other Key Picks

General Motors currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader auto sector are Cummins Inc. (CMI - Free Report) , Ford Motor Company (F - Free Report) and AB Volvo (VLVLY - Free Report) . Cummins and Ford currently carry a Zacks Rank #2 while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins has an expected long-term growth rate of 8.4%. The stock has gained 3.8% in the past three months.

Ford has an expected long-term growth rate of 7.3%. The stock has gained 12.1% in the past three months.

Volvo has an expected long-term growth rate of 5%. Over the past six months, shares of the company have gained 3.5%.

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