GM To Ramp Up Its Spending on Electric Vehicles and Alibaba Beats Earnings Expectations
On Thursday, General Motors Co. chief executive said that the company will ramp up its capital spending to speed the developments of electric vehicles over the next three years. GM shares closed over 5% in Thursday’s session and are up just slightly since the beginning of the year.
There has been tremendous strength and growth in pickup truck sales and sport utility vehicles in North America and the automaker expects to generate $7-$9 billion in cash flow during the second half of the year. This added cash flow will be used to fund the new electric vehicle initiative in the upcoming years.
Alibaba has continued to solidify their reputation as a Chinese e-commerce behemoth with the release of their recent earnings report. Alibaba saw revenue grow 30% in its fiscal second quarter, which is said to be driven by a rebound in Chinese consumer spending.
On Thursday following the news, Alibaba shares closed down 2.69%. If one breaks down the company’s earnings in more detail, it is clear to see the strength of these numbers in various places in their financial statements.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.