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GM Authority

GM Stock Value Down 5 Percent During Week Of January 6 – January 10, 2020

The value of GM stock decreased during the January 6th, 2020 – January 10th, 2020 timeframe. Shares closed the week at $34.65 per share, which represents a decrease of $1.67 per share, or almost 5 percent, compared to last week’s closing value of $36.32.

Movements in GM stock value for the week were as follows:

  • Monday, January 6th: GM stock opened the day (and the week) at $35.95 and closed at $35.84
  • Tuesday, January 7th: GM stock opened at $35.75 and closed at $35.15
  • Wednesday, January 8th: GM stock opened at $35.04 and closed at $34.65
  • Thursday, January 9th: GM stock opened at $34.99 and closed at $35.08
  • Friday, January 10th: General Motors stock opened at $35.15 and dropped to $34.65 by market close

This week marks the third week of decrease in GM stock, which is rather disappointing after the previous upward movement for GM share values. Adding insult to injury is the fact that Tesla shares have been performing very well, despite a recent loss of momentum. There’s also the possibility that the announcement of Tesla’s revealing of its Cybertruck pickup truck negatively impacted GM 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. However, it seems as though General Motors will revive the Hummer nameplate on an all-new fully electric pickup truck.

Of course, there are many factors contributing to the current rut. For starters, GM released its Q4 2019 sales figures last week, and the results showed a decline of over 6 percent. It’s possible that the news may have contributed to the continued decline in GM stock. It’s also possible that delays caused by the UAW strike and the consequential customer dissatisfaction due to parts shortages are contributing to this decline in GM stock value. Additionally, the recalls announced recently, which involve an incorrect alternator connection in GM full-size pickups, as well as a faulty brake control module in the Chevrolet Silverado, GMC Sierra and Cadillac CT6, could have also eroded the previous upward momentum.

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 continuing ebb and flow is emblematic of GM stock value’s overall performance, as it has been in limbo throughout most of 2019. 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 $0.04 per share, or less than 1 percent, this week.

GM Stock Values - January 6 - January 10, 2020
Date Open Close High Low
2020/1/10 35.15 34.65 36.45 34.51
2020/1/9 34.99 35.08 35.1 34.53
2020/1/8 35.04 34.65 35.2 34.41
2020/1/7 35.75 35.15 35.84 34.74
2020/1/6 35.95 35.84 36.18 35.8

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.

The 2021 Chevrolet Suburban and Tahoe were unveiled on December 10th

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.

GM Cruise AV Bolt EV - Spy Shots - October 2018 003

GM Cruise AV prototype testing in October 2018

We remain interested in seeing how GM stock performs through the early stages of 2020, 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 this 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.

2020 Chevrolet Corvette C8 Stingray Coupe Z51 Performance Package with Carbon Flash Badges and Carbon Flash Accents Exterior Torch Red in Studio 022 front three quarters - roof panel off

2020 Chevrolet C8 Corvette Stingray Coupe with the Z51 Performance Package

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 in the coming weeks. The convertible model, announced in October 2019, will launch in 2020 as well. The Corvette is a noteworthy contributor to GM’s financial performance, since the Corvette carries healthy profit margins.

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Comments

  1. Reply
  2. I have been preaching and preaching and preaching, GM needs to get the $hit out !!

    Do something, lets GO !!!!!

    Yet all of 2019 it was status quo, average blah.

    All of GMs, said to be, last generation ICE vehicles are duds, built for China.
    The US customer wants more, different than the China mandated average GM blah vehicles. Yet China is where the sales growth is / was.

    And now its 2020 already, and where is GM ?

    GM it appears is done with the ICE engine, swap in vehicles, so you get what you see.
    Moving forward, GM is all in with EV, yet the major majority, like someone here said, are ICE buyers in the USA.

    So again, its 2020 and where is GM ?

    Like I have said before, the largest market in the US is the mid-sized SUV market.
    GM needed a better preforming mid-sized SUV 2 years ago, at least.
    Now we get the new Hummer, that’s GREAT, yet in the US, it needed to be an ICE first !

    Unless governments here in the US are going to mandate or build out charge stations, EVs will not work for the majority of the US area, sure the majority of the US people who buy the EV live in smaller parts of the country, yet without a mandate, this is at least 10 years out !

    So where is GM in 2020 to 2030, the new GM EVs sound like they will be great vehicles, yet less people will want them, and the vehicles more people want GM does not offer.

    So just like the average GM blah majority vehicles, their stocks will remain average GM blah stock prices.
    Up some, down some, but no breakouts of continuous growth, without some breakouts of vehicles that the majority of the people drive, the mid-sized SUV !

    But we will sit and watch, and read this same story of the ” all new ” GM stock was valued at 33 something and the GM stock is in the 30 somethings !

    Well as long as GM pays out dividends, their stock holders might stay ?
    But if the stock drops below 33 per share with the release of even more lackluster products, will the stockholder stay ?
    I for one would not invest in GM today, as I have watched the release of blah over the last two years !

    The Koreans are building better products than GM today, with a better warranty that is not needed, for less money !

    Reply
    1. Lifelong
      There was an article in Automodive News2 weeks ago that said Hyundai/Kia sales dropped to 7.1 million last year. Down from a peak of 8.5 million in 2015.

      Are you sure you want to tie your horse to that wagon?
      Good news is they started construction of their brand new $16 billion dollar, 105 story new headquarters. They say when it’s completed it will be worth more than the entire company.

      Reply
  3. It doesn’t help sales when you have five year plus upgrade or replacement on current models with mundane styling at best ,styled in China ,then built in China ,Korea ,and Mexico with dubious build quality . ICE may be their objective for the future but you need designs that excite people to buy ,otherwise you lose market share .Closing the high quality Oshawa Assembly Plant in Canada’s last month will even heighten the lose of sales and market share ,when this plant could have been a natural EV builder because Canadians want smaller electric vehicles that perform well in cold weather and don’t contribute to carbon emissions !

    Reply
  4. And me,while I think the corvette is somewhat important to General Motors,the publicity and efforts that are put into it are way beyond then the car justifies for the company.
    And the Camaro is in the same situation.
    Both are low volume sale product but yet receive it seems to me get 40 % of the Generals publicity and time.
    Let take for an example Express and Savanna vans–they might not be the top sales items but why are we letting the Ford Transit take over that market when we are still hanging on to a vehicle that is sitting on the same platform since 1996.
    They are still very capable vehicles and their sales are stable—but why are we satisfied with that.
    We need a newer van from the General that will set new standards –not just follow Ford.
    I think also that we need to keep the current ones around for a while as it seems that are keeping some contractors happy.
    WE NEED NEW PEOPLE MOVERS. ASAP

    Reply

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