General Motors shares reached their highest stage in additional than a 12 months and a half on Tuesday after UBS elevated its 12-month value goal for the automaker’s inventory to $50 a share, up from $34.

UBS analyst Patrick Hummel mentioned GM is “totally again on monitor and sure enjoys sturdy momentum nicely into 2021,” together with its electrical automobile plans. Traders will begin to see GM as extra of an “aggressive” electrical automobile firm over the following 12 months or two, as a substitute of a slow-growth producer like the remainder of the Detroit carmakers, he mentioned.

“With a deal with crystallizing worth of its EV technique … GM will possible get extra credit score for being a relative winner within the transition,” Hummel wrote in an investor word late-Monday.

GM inventory surged by as a lot as 6.1% throughout morning buying and selling to $41.34 per share – its highest intraday value since March 2019. Shares had been buying and selling up 5.5% to $41.12 as of midday.

Cruise, GM’s majority-owned autonomous automobile subsidiary, additionally introduced a pilot delivery partnership Tuesday morning with Walmart. The tie-up features a small fleet of autonomous autos delivering groceries and different gadgets to prospects close to Scottsdale, Arizona.

– CNBC’s Michael Bloom contributed to this report.