Shares of General Motors have surged nearly 6% to notch a record high in intraday trading Tuesday after the automaker revealed a fresh electric van and possible plans to build futuristic flying cars. The move puts auto ETFs in the spotlight as well.
GM stock had rallied by as much as 8.8% to $48.95 a share as of Tuesday morning, resulting in a nearly $70 billion market cap, smashing its prior high of $46.76, which was met in October 2017. After struggling and climbing out of bankruptcy during the Great Recession to go public in 2010, the gains are historic for the automaker.
Are Flying Cars Finally Within Reach?
In something out of a futuristic cartoon, GM also mentioned the possibility of delving into flying car production. The potential expansion into “personal air mobility” was mentioned as part of Cadillac’s portfolio of luxury and EV vehicles, and includes an autonomous shuttle and an electric vertical take-off and landing (eVTOL) aircraft, more commonly known as a flying car or air taxi.
Michael Simcoe, vice president of GM’s global design, said each concept expressed “the needs and wants of the passengers at a particular moment in time and GM’s vision of the future of transportation.”
“This is a special moment for General Motors as we reimagine the future of personal transportation for the next five years and beyond,” Simcoe said.
The flying transport plans to carry a sole passenger and travel roughly 56 mph between rooftops and other city-based destinations, according to the company. A GM spokeswoman confirmed GM has already designed models of both autonomous concepts, but computer renderings were revealed during the presentation.
The air travel segment is attracting significant investments from the automotive and aviation industries. In addition to GM, Fiat Chrysler earlier Tuesday announced a new partnership with air mobility company Archer to help lower costs and accelerate the launch of an eVTOL aircraft.
For investors looking to participate in future air travel developments, ETF choices include the First Trust Nasdaq Transportation ETF (FTXR), the First Trust NASDAQ Global Auto Index Fund (CARZ), and the iShares Self-Driving EV and Tech ETF (IDRV).
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