GM accelerates electric-vehicle plans as it races to catch up to Tesla

‘Climate change is real,’ GM CEO Mary Barra says

General Motors Co. on Thursday unveiled an ambitious plan for its electric cars, vowing to invest more in them than in gas-powered vehicles for the first time in its history.

GM GM, 0.37% said it would offer 30 all-electric models worldwide by 2025, and that 40% of the company’s vehicles available in the U.S. would be battery electric vehicles by the end of that year.

See also: GM’s profit is ‘a pole vault’ above Wall Street hopes

GM increased its investment in electric vehicles and driverless cars to $27 billion through 2025, up from a $20 billion investment planned before the onset of the COVID-19 pandemic.

That means that more than half of GM’s capital and nearly 60% of its product development team will be devoted to electric and electric-autonomous vehicle programs, it said.

“Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle,” said GM Chief Executive Mary Barra said in a statement. “We are transitioning to an all-electric portfolio from a position of strength and we’re focused on growth.”

Shares of GM held on to losses after the announcement and were recently off around 1%. The stock has gained 16% this year, compared with gains around 10% for the S&P 500 index.

Electric-car makers and some alternative-energy companies are among the biggest 2020 gainers, with eye-popping runs such as the nearly 1,100% advance for Chinese electric-car maker Nio Inc. NIO, 10.12%

Tesla Inc. TSLA, -0.79% stock has risen nearly 500% this year and broken 34 record closes, with the latest boost coming from the company’s inclusion in the S&P on Dec. 21.

Related: Plug Power’s Q3 beat leads to price-target increase at Oppenheimer

Shares of pre-revenue Nikola Corp. NKLA, -2.19% have risen nearly 150%, and shares of Plug Power Inc. PLUG, 2.40%, a company that mostly makes hydrogen fuel-cell packs to power warehousing equipment such as forklifts, have skyrocketed 650% and routinely appear on Robinhood’s top 10 stocks list.

This article was originally posted by MarketWatch.