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Car suppliers in the autonomous driving spaces, as well as tire and parts manufacturing, were among the key gainers on Tuesday after General Motors (New York Stock Exchange: GM) strong earnings results.
On a call with analysts at Tuesday, General Motors (GMManagement at ) highlighted both loosening supply chains and strong demand for emerging efforts in autonomous driving and electric vehicles. In fact, demand is expected to outstrip supply across multiple models under the GM umbrella by 2022 with sales expected to double by the end of the decade. The bullish comment certainly seemed to increase optimism about the auto industry in general.
While similar automakers like Ford and Tesla gained heavily after the positive feedback, suppliers posted even stronger gains. In particular, autonomous driving technology companies such as Innoviz (INVZ) +10.14%Luminar (LAZR) +7.5%Mobileye (MBLY) +6.84%and Cepton (CPTN) +3.85% it seemed to benefit from Cruise’s optimistic outlook and self-driving development prospects. Cepton (CPTN) has been selected as GM’s LiDAR provider for 2023.
Meanwhile, bullish comments on EV demand helped boost many battery-related stocks like QuantumScape (QS) +5.98%. GM’s big bet on lithium mining company Lithium Americas (LIT) also helped boost several miners, with analysts predicting similar deals to come.
Finally, the general comment about strong demand for cars in 2023 and the relaxation of supply chain restrictions to keep production on schedule, such as BorgWarner (BWA) +2.34%Visteon Corporation (VC) +3.53%American Axle (AXL) +4.17%Magna International (MGA) +2.25%Incorporated Funds (DAN) +4.88%and Aptiv (APTV) +2.58% they all won hands down. Rounding out the winners are tire manufacturers like Goodyear Tire (GT) +5.01% and Cooper-Standard (CPS) +9.74% rose sharply on Tuesday.
Read the transcript of GM’s earnings call.
