GM stock jumped as much as 7 percent in premarket trading on Tuesday on news that the automaker had struck a new partnership with Honda to develop autonomous vehicle technology and to bring self-driving cars to market as part of its Cruise Automation division.
In fact, GM was trading as high as $35.05 at 9:30 am. But the newfound collaboration wasn’t enough to sustain a day-long rally for the Detroit-based automaker. By mid-morning, GM stock was up less than 2 percent.
By comparison, Honda’s U.S. shares were down more than 3 percent in trading Wednesday.
GM shares closed on Wednesday, October 3rd at $34.00 per share, up of $0.70, or 2.1 percent.
GM shares are down more than 21 percent over the past year. In fact, they hit a new 52-week low during trading on Tuesday, October 2nd.
Since the Initial Public Offering (IPO) of the “new GM” in November 2010, the automaker has been doing its best to increase its share price. The firm has exited unprofitable markets, divested of loss-making divisions, made adjustments to its business model in order to prioritize profit over market share, and also invested heavily into new-age mobility ventures such as electric and autonomous vehicles. However, GM stock continues to float around its yearly low, despite an occasional rally.