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GM Stock Jumps On News Of Autonomous Vehicle Tie-Up With Honda

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.

General Motors stock - day end October 3 2018

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.

But despite today’s rally, GM shares continue to trade only four points higher than the $33 per share level that the “New GM held its Initial Public Offering (IPO) in November 2010. The automaker has been doing a significant amount to increase its share price, exiting unprofitable markets, divesting loss-making divisions, making adjustments to its business model in order to prioritize profit over market share, while investing heavily into new-age mobility ventures such as electric and autonomous vehicle technologies.

Stay tuned to ongoing GM stock news and complete GM news coverage right here at GM Authority.

GM Authority Executive Editor with a passion for business strategy and fast cars.

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Comment

  1. This is really a big deal as it will help GM cut cost with capital from a good sized mfg and volume over two large corporations.

    This is going to really make a difference for both companies and shows why a GM has invested heavy in technology.

    Reply

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