General Motors shares surges more than 3% in moring trading

General Motors shares surges more than 3% in moring trading.

General Motors said on Wednesday it will increase spending on electric and autonomous vehicles to $35 billion through 2025, a 30% increase from plans announced late last year. It also said it is raising its earnings guidance for the first half of the year.

The additional money will be used to expand its rollout of EVs and accelerate production of its battery and fuel cell technologies, including two new U.S. battery plants in addition to two that are currently under construction.

America's largest automaker is racing to catch up to EV leaderTeslaand compete for a leadership position against other well-established automakers such asVolkswagen. GM plans to sell more than 1 million EVs annually by 2025.

"We are investing aggressively in a comprehensive and highly-integrated plan to make sure that GM leads in all aspects of the transformation to a more sustainable future," GM CEOMary Barrasaid in a statement.