GM increases after Hedge Fund Engine No. 1 is involved

General Motors stock rose early Monday after it was revealed that a small but influential hedge fund had bought a stake in the automaker and supported GM’s plans to go all-electric.

The hedge fund engine No. 1, which won three board seats at ExxonMobil earlier this year, claims to have received a stake in GM.

The other GM news of the day was that it entered into a strategic supplier agreement with Wolfspeed, Inc. to develop and provide silicon carbide power devices for future electric vehicles that increase range and reduce charging times. GM does not disclose the terms of the agreement or any financial details, but Wall Street responded.

By noon, GM’s share price was up 2.88% to $ 54.66. That surge slowed to 1.52%, or $ 53.94, by the afternoon. It closed the day at $ 53.98, up 1.60% from the previous day’s closing price.

The San Francisco-based hedge fund said it had “very constructive and collaborative discussions with GM,” adding specific value to GM’s commitment to electric vehicles and supporting the business case for the company’s transition plans.

“For the first time in years, GM is ready to regain market share. The company’s advantages in battery technology and its plans to invest $ 35 billion in battery electric vehicles by 2025 position it well against the competition, ”said Edward Sun, portfolio manager at Engine No. 1, in a statement on Monday.

Engine No. 1, Steve Murray, declined to comment on the amount of the fund’s stake in GM but said it came about in the first quarter.

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