General Motors shares close higher on Friday, GM venture’s Hongguang MINI EV is now the most sold electric vehicle in China

The Hongguang MINI EV, a compact electric vehicle produced by General Motors Co’s joint venture in China, has become the most sold EV model in the country. According to industry data,
15,000 Hongguang MINI EVs were sold in August compared with 11,800 Tesla Model 3 sedans.

The China Passenger Car Association, which has a different counting method compared to Tesla, said that 11,000 Shanghai-made Model 3 cars had been sold in China in July.

General Motors shares closed higher for the sixth time in the past ten trading sessions in New York on Friday. The stock went up 1.76% ($0.52) to $30.00, after touching an intraday low at $29.35 and an intraday high at $30.37.

Shares of General Motors Company have retreated 18.03% so far in 2020 compared with a 6.07% gain for the benchmark index, S&P 500 (SPX).

In 2019, General Motors’ stock went up 9.42%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

The two-door micro EV was launched in July by a joint venture between General Motors, SAIC Motor Corp and SGMW.

The Hongguang MINI EV’s starting price is ¥28,800, or $4,200, which is not even 10% of the starting price before government subsidy for the China-produced Model 3 sedan by Tesla (¥291,800).

Analyst stock price forecast and recommendation

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $35.50, with a high estimate of $60.00 and a low estimate of $27.00. The median estimate represents an 18.33% upside compared to the closing price of $30.00 on September 4th.

The same media also reported that at least 13 out of 18 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 3 – as “Hold”.