How High Can GM Stock Go and Is $100 in Sight for the Automaker?
General Motors (GM) stock has gained 46 percent YTD and is among the S&P 500 Index's top 50 performers. Recently, the stock hit its all-time high since it emerged from bankruptcy in 2009. GM stock was previously among the top discussion topics on WallStreetBets. Automotive stocks including Tesla, NIO, Nikola, Fisker, and Workhorse regularly feature among the top names in the group. WallStreetBets has been instrumental in triggering a short squeeze in many stocks. GM and other legacy automakers like Ford are outperforming their pure-play EV (electric vehicle) competitors in 2021. A year ago, markets didn't see legacy automakers as competitors in the EV race. However, thanks to their focus on EVs, these companies have managed to change markets' perception. thank you, @mtbarra for all you are doing for the planet and for shareholders! https://t.co/XyAe8nhMlw  Earlier this year, Ford also bumped up its investments in EVs and autonomous driving. GM plans to double down on its new battery plans and will set up four instead of the previously planned two battery plants. The company expects to sell 1 million EVs globally by 2025. That will still be a fraction of Tesla, which is expected to sell over 1 million EVs in 2022. General Motors became the first Detroit automaker to commit to a zero-emission future by 2035. The company announced that it will increase its investments in electric cars and autonomous driving by 30 percent. GM expects to spend $35 billion between 2020 and 2025. Currently, GM stock isn't very popular on Reddit . However, there are multiple reasons why WallStreetBets traders might see value in the stock. First, GMs EV plans are a fundamental story and make the stock attractive. Second, from a valuation perspective, despite the spike this year, GM trades at an NTM PE multiple of 11.7x, which looks on the lower side. According to the data from Fintel, GM had a short volume ratio of 15.7 percent on June 16, which is the highest that weve seen in June so far. While GM isn't a prime candidate for a short squeeze, it still looks like a good stock to buy for the long term. GMs target price of $63.90 implies an upside of only 3.5 percent over the next 12 months. Its highest target price is $90. Meanwhile, over the last few months, several brokerages have boosted GMs target price. Article continues below advertisement  $GM News Supports $100+ Stock - Citi Reiterates Buy PT $90  Kaushik (@skaushi) June 16, 2021  Citi has raised GMs target price to a street high of $90. Earlier in June, Barclays and JPMorgan Chase raised the target price. In May, Tudor Pickering initiated coverage on the stock with a $76 target price and a buy rating. Article continues below advertisement  The rally in GM stock might be far from over. As the company unveils its electric vehicles including the widely awaited Silverado pickup, which will compete with Fords F-150 electric and Teslas Cybertruck, markets might take a more favorable view of GM stock.