GM investors will reward investing in electric cars – Barra

Image copyright Reuters Image caption Mary Barra has seen the stock price rise 17% since she took over as chief executive officer, and the company is on course to meet its target of producing…

Image copyright Reuters Image caption Mary Barra has seen the stock price rise 17% since she took over as chief executive officer, and the company is on course to meet its target of producing 10m vehicles a year by 2022

Mary Barra says investors will reward General Motors if the automaker keeps investing in electric and self-driving vehicles.

Ms Barra, the chief executive officer, said Tuesday that carmakers need to invest in more battery technology and software to meet stricter emissions and safety standards.

If that investment pays off, GM’s share price will appreciate, she said.

Some studies have forecast stock market rewards for investors who invest in companies that generate revenue from the sale of electric vehicles.

GM has seen a significant rise in its share price since Ms Barra took over as chief executive officer in 2014.

That rise, however, has stalled in recent weeks as investors wait to see the final result of the US trade war with China.

Since June 6, GM’s share price has fallen almost 10% compared with a decline of 1.3% in the S&P 500 index.

“There’s every indication we will take the value of the company up over time as we do more [investments] in autonomous vehicles, in battery technology, and autonomous vehicles and ride-sharing services,” Ms Barra said at an automotive investment conference in Las Vegas.

GM is the largest private owner of battery manufacturing capacity in the US, she said.

To compete in China, GM has to invest there in the “latest and greatest” electric vehicle technology as well as in vehicles that can be used for ride-sharing and mobility services in China, Ms Barra said.

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