General Motors surges 9% after it commits $2 billion to build electric vehicles at Tennessee plant (GM)

Cadillac LyriqCadillac

Summary List Placement
  • General Motors surged 9% on Tuesday after it said it would invest $2 billion in its Spring Hill, Tennessee, manufacturing plant to build electric vehicles.
  • The new Cadillac Lyriq will be the first electric vehicle model to roll off the production line in Tennessee, according to the announcement. 
  • General Motors also said it would invest an additional $152.5 million in five other manufacturing plants spread across Michigan.
  • The announcement came ahead of tonight's 8 p.m. reveal of its new electric Hummer.

General Motors surged 9% on Tuesday after it said it would invest $2 billion into its Spring Hill, Tennessee, manufacturing plant to transition it to electric vehicle production.

The first electric vehicle scheduled to roll off the line will be the Cadillac Lyriq, according to GM. The company didn't provide an official launch date of the vehicle.

In addition to electric vehicles, the Tennessee plant will also continue to build internal combustion engine-powered vehicles.

General Motors also said it would invest $152.5 million in five manufacturing plants across Michigan. The investments will be focused on transitioning and improving the production of its SUV and pickup truck models.

Today's announcement comes ahead of GM's official unveiling of its revived electric Hummer truck. The truck is expected to go from zero to 60 mph in three seconds and have 1,000 horsepower, according to the company.

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The truck will be unveiled tonight at 8 p.m. EST.

Both GM's $2 billion electric vehicle investment and the revival of its Hummer truck in electric-powered form follow a broader trend of consumers and investors focusing more on electric vehicles than gasoline-powered vehicles.

Part of that trend has been driven by the massive success of Tesla, which has seen its market value soar to over $400 billion in the past year, making it worth nearly 10x more than General Motors, despite selling a fraction of the amount of cars that GM does. 

"These investments underscore the success of our vehicles today, and our vision of an all-electric future," GM CEO Mary Barra said. 

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