General Motors (GM) shares were in the spotlight on June 10 after the automaker made significant announcements at its GM Empower event in San Francisco.
Crucially, the NYSE-listed giant announced plans to enter the grid-scale energy storage market via a sodium-ion battery partnership with Peak Energy.
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GM also committed to redirecting its Tennessee factory to produce lithium iron phosphate (LFP) cells for stationary grid infrastructure and data centers rather than electric vehicles (EVs).
At the time of writing, General Motors stock is trading at roughly the same price at which it started 2026.
Significance of the Energy Pivot for General Motors Stock
This energy pivot is constructive for GM shares as it marks a definitive shift toward capturing the fast-growing utility and data center markets, which are heavily strained by AI expansion.
UBS analysts reiterated their “Buy” rating and a $102 price target on Wednesday, calling the company’s capital-efficient venture with Peak Energy a savvy move.
Utilizing cost-effective sodium-ion and LFP chemistries for the grid enables General Motors to target a market growing 30% annually while preserving premium battery tech for its vehicles.
The bank cited a 0.91% dividend yield on GM as an additional reason to have it in your investment portfolio.
GM Shares Are Trading at an Attractive Sales Multiple
General Motors shares are attractive as a long-term holding also because the firm’s core automotive segment remains fundamentally strong.
The multinational is standardizing bidirectional charging capabilities across its entire EV lineup, creating a huge vehicle-to-grid (V2G) ecosystem that transforms its cars into virtual power plants.
Additionally, at roughly 6.5x earnings, GM is cheaper to own than rival Ford (F) at more than 9x, especially given its strong Q1 earnings that handily beat Street estimates.
Combined with a massive $6 billion buyback authorization announced in late January, the Detroit automaker offers investors a favorable risk-reward for the back half of 2026.
How Wall Street Recommends Playing General Motors
Wall Street firms also remain convinced that GM stock will rip higher from here as the year unfolds.
The consensus rating on General Motors is “Moderate Buy,” with the mean price target of $94 indicating potential upside of about 17% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com