GM Stock Value Down 2 Percent During Week Of June 28 – July 2, 2021

The value of GM stock decreased during the June 28^th, 2021 to July 2^nd, 2021 timeframe. Shares closed the week at $58.96 per share, which represents a decrease of $1.34 per share, or 2.22 percent, compared to the previous week’s closing value of $60.30.

Movement & Ranges

By comparison, shares of GM’s cross-town rival, Ford Motor Company, decreased 1.71 percent, or $0.26, during the same timeframe.

GM Stock Factors

GM stock value fell this week after minor gains last week.

Some of the factors affecting GM stock value this week include second-quarter sales reporting, headlined by a 40-percent jump for GM sales in the U.S., with sales increasing for all four of GM’s U.S. brands.

GM-backed automotive data startup Wejo also announced $25 million in fresh investments from Microsoft and Sompo Holdings Inc.

Meanwhile, GM announced an accelerated timeline for conversion of the GM CAMI Assembly plant in Ingersoll as the all-electric BrightDrop EV600 light commercial vehicle heads towards production. In other production-related news, the Chevy Malibu and Cadillac XT4 will resume production at the GM Fairfax Assembly facility on August 16^th.

Internationally, the U.S. is set to oversee an upcoming union vote at the GM Silao Plant in Mexico after irregularities were discovered following a vote held earlier this year.

New recalls were also announced for the Cadillac SRX and Saab 9-4X for a faulty suspension toe link, while GM is set to fix an erroneous air fuel enrichment for the Chevy Camaro, Malibu, Trailblazer, and Buick Encore GX.

GM Stock Value Macro Factors – Strategy

In November, GM CEO Mary Barra shared the company’s plan to launch a total of 30 new electric vehicles globally by 2025, with a total investment of $7 billion. To put that in perspective, 40 percent of GM’s offerings will be fully electric by the end of 2025, compared to just three percent in 2021.

More recently, GM announced an increase in EV and AV investment, with a whopping $35 billion earmarked between now and 2025.

GM Stock Value Macro Factors – Sales

GM previously reported first quarter sales for the 2021 calendar year, with an increase of 4 percent to 642,250 units in the U.S. market. Sales increased at Buick, Cadillac, and GMC brands, while sales decreased at Chevrolet.

1. In thousands (000s)
2. Total  is in GM markets

Notably, the all-new 2021 Chevy Suburban and Chevy Tahoe dominated their segment in Q1, as did the all-new 2021 Cadillac Escalade.

GM Stock Value Macro Factors – Earnings

GM previously reported Q1 2021 earnings, including $3 billion on $32.5 billion in revenue, a 900-percent jump in income and 0.6 percent decrease in revenue compared to Q1 of 2020. GM stated that the earnings were driven by strong price and mix performance in North America, as well as strong credit and residual value performance at GM Financial, and industry recovery in China.

GM Q1 2021 Earnings Summary

Figures in billions of USD, except for per share amounts and percentages.

METRIC	Q1 2021	Q1 2020	Q1 2021 - Q1 2020	% CHANGE Q1 2021 / Q1 2020
GAAP METRICS
REVENUE	$32.5	$32.7	$-0.20	-0.6%
NET INCOME	$3.0	$0.3	$+2.70	+900%
NET INCOME MARGIN	9.3%	0.9%	8.4%	N/A
AUTOMOTIVE OPERATING CASH FLOW	-$1.1	$0.3	$-1.40	-311.1%
EARNINGS PER SHARE (EPS) DILUTED	$2.03	$0.17	$+1.86	+1094.1%
NON GAAP METRICS
% EBIT-ADJUSTED MARGIN	13.6%	3.8%	9.8%	N/A
EBIT-ADJUSTED	$4.4	$1.2	$+3.20	+266.7%
ADJUSTED AUTOMOTIVE FREE CASH FLOW	-$1.9	$0.9	$-2.80	-311.1%
EPS DILUTED - ADJUSTED	$2.25	$0.62	$+1.63	+262.9%
DIVISIONAL RESULTS
GM NORTH AMERICA EBIT-ADJUSTED	$3.1	$2.2	$+0.90	+40.9%
GM NORTH AMERICA EBIT-ADJUSTED MARGIN	12.1%	8.5%	3.6%	N/A
GM INTERNATIONAL EBIT-ADJUSTED	$0.3	-$0.6	$+0.90	+150%
- CHINA EQUITY INCOME	$0.3	-$0.2	$+0.50	+250%
GM FINANCIAL EBT-ADJUSTED	$1.2	$0.2	$+1.00	+500%

GM Stock Value Macro Factors – Products

GM stock values rose considerably in April, driven primarily by confirmation of an upcoming all-electric iteration of the popular Chevy Silverado pickup truck. GM stock value hit a record high of $63.44 per share following the announcement, but surpassed the $64 mark the second week of June, setting a new record for the “new GM.”

In February, General Motors unveiled the refreshed 2022 Chevrolet Bolt EV and all-new 2022 Chevrolet Bolt EUV, expanding the automaker’s all-electric offerings.

GM’s luxury division, Cadillac, also debuted the CT4-V Blackwing and CT5-V Blackwing ultra-high-performance sedans in February. The new Blackwing sedans are hotly anticipated for their extreme levels of performance and refinement. Both models offer enthusiast-oriented specs and equipment. As GM Authority was first to report, preorders for the sedans opened in conjunction with the debut in February, with GM confirming that a $1,000 deposit is required for the first 500 preorders (250 units per model). Preorders have since sold out. Deliveries are expected to ramp up this summer.

Much of the upward momentum in GM stock value seen in January is attributed to the automaker’s latest all-electric vehicle efforts, debuts, and strategy, which includes an in-depth presentation released during the Consumer Electronics Show (CES) tech conference. Highlights from the presentation include the launch of BrightDrop, a new business venture aimed at providing last-mile electric delivery solutions, software, and services to delivery and logistics companies.

GM also unveiled a series of futuristic concepts for the Cadillac luxury brand, including the Cadillac Personal Autonomous Vehicle, a self-driving luxury vehicle, and an autonomous, single-seater helicopter called the Cadillac Vertical Take-Off and Landing Vehicle (VTOL), while also teasing the new Cadillac Celestiq, an upcoming high-end flagship sedan utilizing an all-electric powertrain.

Cadillac dealerships are now preparing for the arrival of the Lyriq and future all-electric Cadillac models with a slew of upgrades. The new Lyriq is expected to enter production at the end of March in the 2022 calendar year.

GM Stock Value Macro Factors – Events

Earlier this month, GM stock value saw a  healthy 7-percent increase following the announcement that efforts to soften the impact of the global microchip shortage worked better than originally anticipated, with new-vehicle deliveries increasing across the U.S and Canada in addition to upcoming better-than-expected first-half financial results.

At the outset of the shortage, GM cut production at four of its facilities, followed by extended production cuts at three of the facilities through April, and another production cut at Lansing Grand River for the remainder of March, the latter of which is expected to have affected production of 5,100 units.

Production cuts were also extended at GM’s Wentzville Assembly plant in Kentucky and CAMI assembly in Ingersoll, Ontario. The Wentzville facility restarted production on April 12^th, while production at the GM Lansing Grand River Assembly plant restarted in May, but idled again shortly thereafter, only to be restarted in June.

It was previously reported that GM is stockpiling unfinished vehicles waiting for new chips to arrive in a “build-shy” strategy intended to keep production rolling. Additionally, GM is building select units of the 2021 Chevy Silverado 1500 and 2021 GMC Sierra 1500 without certain fuel-saving technologies as a result of the shortage, including automatic engine stop-start. GM’s range of full-size SUVs is also rolling off the line without automatic stop-start.

It is believed that the microchip shortage could eat into earnings by as much as $2 billion during the 2021 calendar year, with estimates that nearly 280,000 units have been cut from GM’s production schedule as a result of the shortage thus far.

An emergency funding proposal earmarks $52 billion to support domestic chip production, including funds to support construction of 10 new semiconductor chip plants. The bill recently passed the U.S. Senate. GM is now seeking a long-term supply contract to mitigate the effects of a chip shortage in the future.

Now, production of the 2021 Chevy Camaro has resumed at GM’s Lansing Grand River Assembly facility in Michigan after the facility was idled due to the ongoing global microchip shortage. Production of the Cadillac CT4 and CT5 is set to resume August 9^th, while GM’s Fairfax Assembly in Kansas is scheduled to remain idle until August 16^th.

In the face of dwindling vehicle inventory, GM Financial has announced it will stop end-of-lease purchases with non-GM dealers, thus prioritizing participating GM dealers with regard to access to vehicles reentering the market.

Internationally, GM’s Gravataí facility in Brazil, which produces the Chevy Onix, will remain closed until mid-August. In further production-related news, Mexico recently extended a critical union vote at the GM Silao Plant in Mexico, which will determine whether to ratify the existing union currently representing workers at the facility.

GM Stock Value Micro Factors

Two GM vehicle recalls were recently announced, including a recall for the performance air intake calibration for the Chevy Camaro and GM trucks, as well as power steering assist loss for GM’s full-size SUVs.

In political news, GM has announced its support for emissions reductions put forth in a 2019 agreement between automakers and the state of California. What’s more, President Biden recently indicated he is considering a new point-of-sale rebate for EVs.

The greater auto industry, including the UAW workers union and major manufacturers like General Motors, previously called on the President Biden to roll out tax credits and incentives to drive EV sales. The latest is that the Biden Administration plans to roll out a $100 billion plan for new EV rebates.

Stock Performance Year-To-Date

GM stock value has increased considerably over the past year, rising over 45 percent, or $18.52, as of this writing. Some of the biggest gains were seen in January, during which GM stock value peaked around $55 per share, before falling later in the month. In February, GM stock value clawed its way back to the mid-$55 range before falling to $50 per share in early March.

GM stock value saw steady gains throughout the month of March before dipping again later in the month, only to rise to record-breaking heights in early April, once again breaking the $60-per-share mark. GM stock value dipped through the month of May, but reached $64 per share the second week of June, setting a new record for the “new GM.” Since then, GM stock value has settled around the $60-per-share mark.

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