The value of GM stock increased during the December 9th, 2019 – December 13th, 2019 timeframe. Shares closed the week at $35.65 per share, which represents an increase of $0.11 per share, or less than 1 percent, compared to last week’s closing value of $35.54.
Movements in GM stock value for the week were as follows:
- Monday, December 9th: GM stock opened the day (and the week) at $35.45 and closed at $35.38
- Tuesday, December 10th: GM stock opened at $35.35 and closed at $35.11
- Wednesday, December 11th: opened at $35.13 and closed at $35.24
- Thursday, December 12th: GM stock opened at 35.34 and closed at 36.10
- Friday, December 13th: General Motors stock opened at $36.36 and fell to $35.65 by market close
This week’s stable increase in GM value is certainly welcome after last week’s decline, which itself came after a rebound. GM stock has been on rocky ground after experiencing a five-week streak of growth. Interestingly, GM’s announcements of the Lordstown battery plant, the $1.5B investment in the Wentzville assembly plant, in addition to the unveiling of the new-generation, 2021 Chevrolet Suburban and Chevrolet Tahoe full-size SUVs, seem to have no influence on GM share values – at least not yet.
While the announcement doesn’t appear to have had any bearing on GM stock, Tesla’s revealing of its Cybertruck pickup truck seemed to negatively impact share values, as it could make Tesla a potential threat to GM’s leading position in pickup trucks, though GM has since gone on the record to outline the obstacles that must be overcome before electric vehicles become mainstream.
Other aspects may also be influencing GM stock value, including the RICO lawsuit GM filed against FCA, in which GM claims that FCA was “paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration” of the labor agreements. Adding to the drama is the fact that UAW President Gary Jones stepped down amid the investigation. However, it’s unclear how either event impacted GM’s stock value at this time.
The current ebb and flow is emblematic of GM stock value’s overall performance, as it has been in limbo throughout most of 2019. Last week’s drop in value effectively scrubs the five-percent jump in value GM stock experienced after the release of its Q3 earnings report on October 29th. GM stock saw an initial jump in value as a result of overwhelmingly positive Q2 2019 earnings, wherein the automaker outperformed expectations. Several subsequent drops in value prior to the strike are believed to have been related to warning signs of an economic slowdown, along with various escalations with trade wars in China.
By comparison, shares of GM’s cross-town rival, the Ford Motor Company, increased $0.21 per share, or more than 2 percent, this week.
Over the last few years, GM has taken many steps to increase the value of its stock, including exiting markets where it can’t find ways to turn a profit (such as Europe, South Africa and India), closing plants in various parts of the world, divesting loss-making divisions (such as Opel-Vauxhall), making adjustments to its business model in order to prioritize profitability over chasing market-share goals, focusing on its Cadillac luxury brand to increase its share of high-profit automobiles, investing heavily into new-age mobility ventures such as electric vehicles and autonomous driving tech, while discontinuing some sedans (Cruze, Impala, LaCrosse, XTS, CT6) and closing various plants to focus on more profitable crossovers, SUVs and pickup trucks.
Despite these actions, the value of GM stock has struggled to surpass the $40 mark, spending most of its time stuck in the $33-$38 per share range. The chain of events is problematic given that the “new GM” had its Initial Public Offering (IPO) at $33 per share in November 2010, causing frustration upon many investors.
We remain interested in seeing how GM stock performs through the end of 2019, especially as the Detroit-based automaker launches its GEM-based vehicles for developing markets, completes the roll-out of its full-size pickup trucks and begins to launch its all-new full-size SUVs and various new Cadillac models early next year. All of these products are expected to contribute significantly to GM’s bottom line.
In addition, the automaker was planning to roll out an autonomous ride-sharing service from its Cruise division by the end of 2019, but has announced that it has delayed the launch timeline. GM sees the robo-taxi service as a significant opportunity for growth.
In July 2019, GM unveiled the new Corvette, which adopts a mid-engine layout for the first time in its history. The mid-engine Corvette, also known as Corvette C8 or the 2020 Corvette, is scheduled to launch by the end of 2019. The convertible model, announced in October 2019, will launch in 2020. The Corvette is a noteworthy contributor to GM’s financial performance, since the Corvette carries healthy profit margins.