LG Electronics smiled on Wednesday as its stock price gained the largest daily margin in seven years amid the news that it will supply key electric car parts to a global car maker GM.
Investors welcomed this news, taking it as a sign that LG Electronics’ electric car-related efforts which remained in the investment and R&D level, will finally turn into actual earnings.
On October 21, LG Electronics’ stock price closed at 53,600 won, up 6,750 won or 14.41 percent from a day ago. The growth rate is the highest since October 30, 2008 (14.90%). During the trading hours, the stock price rose 15.47 percent, setting a new record high in LG Electronics’ history.
LG Electronics’ market capitalization shot up by more than 1.1 trillion won, with its rank rising to No. 28 (8.77 trillion won) from No. 37 (7.66 trillion won) in the KOSPI Market. Even among LG Group companies, LG Electronics overtook LG Display, ranking No. 4 behind LG Chem, LG Household & Healthcare, and LG Corp. in terms of market capitalization.
On the same day, LG Electronics announced that it was selected as a strategic partner for development of GM’s electric car Chevrolet Bolt. Under this partnership, LG Electronics will supply core parts and systems, including drive motors, inverters, in-car chargers, and automatic compressors.
