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General Motors Co. (NYSE: GM) on Thursday unveiled its all-electric Cadillac Lyriq which is expected to be in the US showrooms by 2022. The company says the Cadillac Lyriq will compete with existing EV brands in the market.
American multinational car maker, General Motors Co. (NYSE: GM) on Thursday unveiled its next chapter of American electric luxury brand, Cadillac Lyriq. According to the company, the midsize crossover is expected to arrive in U.S. showrooms in late 2022. This is a huge leap in the company that is anticipating to compete with the already established EV maker Tesla Inc. (NASDAQ: TSLA).
As a result GM shares jumped 1.10% to close the day trading at $26.62. Its business was largely interrupted by the coronavirus pandemic that saw it close down most of its business operations during the second quarter. However, in the past three months, the company has been able to shake off and rise from the COVID-19 market shock.
According to its share historical data, the share value has dropped 27.27% year to date, however it added 11.24% in the past three months. The recent rise can be attributed to several fundamentals aligning in favor of the company. One, the US market is slowly reopening and its production has recovered from the coronavirus shutdown. On the other hand, the company was rigorously involved in the making of ventilators used by coronavirus patients, whereby it received huge funding from the federal government.
With investors feeling confident the company capabilities to deliver good results in the coming quarters, its shares have been rising steadily. However, it’s Q2 results were not appealing as it reported 53% drop in revenue in comparison to the prior quarter. The company lost $806 million in the second quarter and burned through $7.8 billion in cash. Onwards, General Motors expects to generate $7 billion to $9 billion in free cash flow during the second half of the year.
General Motors New All-Electric Cadillac Lyriq
The Cadillac lyriq is the first to debut with the automaker’s next-generation batteries and EV architecture. Cadillac President Steve Carlisle told reporters during a media briefing:
“It marks a turning point for the brand, a pivot point for the brand, an opportunity to regain momentum and position the Cadillac brand for its next chapter. Lyriq really is the cornerstone upon which we are going to build the future.”
Cadillac Lyriq will come equipped with a massive diagonal 33-inch curved LED screen on the interior, advanced lighting technology on the exterior and GM’s Super Cruise driver-assist system. Andrew Smith, Cadillac executive director of global design said:
“It really is an amazing piece of engineering and, frankly, industrial design. We wanted to make it feel like a piece of jewelry, so it does kind of float”.
The Cadillac Lyriq is anticipated to boost General Motors revenues once released in the US and China market, hence bolstering its shares incase of any market uncertainty.