The value of GM stock increased during the week of September 20th to September 24th, 2021, compared to the stock’s closing value the week before. Shares closed the week at $52.23 per share, representing an increase of $0.90, or 1.75 percent compared to the previous week’s closing value of $51.33.
Movement & Ranges
Date | Open | Close/Last | High | Low |
---|---|---|---|---|
9/24/2021 | $51.88 | $52.23 | $52.63 | $51.72 |
9/23/2021 | $51.10 | $51.92 | $52.08 | $51.04 |
9/22/2021 | $50.03 | $50.78 | $51.22 | $50.03 |
9/21/2021 | $49.57 | $49.37 | $49.78 | $48.79 |
9/20/2021 | $49.45 | $49.37 | $49.54 | $48.37 |
By comparison, shares of GM’s cross-town rival, Ford Motor Company, increased 1.7 percent, or $0.23, during same timeframe.
GM Stock Factors
GM stock value was up this week after a 4-percent increase last week and a small increase the week prior.
The ongoing global microchip shortage continues, affecting GM stock value by impacting production, vehicle supply, and pricing. A recent analysis predicts that the shortage may end up costing the global auto industry upwards of $210 billion in lost revenue, almost twice what was originally forecast. General Motors president Mark Reuss recently indicated that he expects the microchip supply to stabilize at a lower level than desired for full recovery. General Motors is also currently gearing up to make significant changes to its supply chain the hopes of avoiding future shortages.
Some good news out of Michigan, though, as GM recently restarted battery production for the all-electric Chevy Bolt EV and Bolt EUV following a massive recall for two possible battery defects lying with supplier LG Chem. Further good news comes from Mexico as well following the resolution of a labor dispute at the GM Silao production facility.
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. Additionally, GM has announced an investment of $71 million for the new Advanced Design and Technology campus in Pasadena, and a cash infusion for AI vision software company Algolux.
GM Stock Value Macro Factors – Sales
General Motors recently posted a 34-percent sales gain for the Canadian market, as well as a 5-percent increase in China where GM just opened its expanded Advanced Design Center. However, Toyota outsold the General in the U.S. during the second quarter of the year, although by only 577 units.
General Motors also recently released its second-quarter sales, 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.
Meanwhile, first quarter sales for the 2021 calendar year included 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.
GM’s full-size models continue to sell well, with the 2021 Cadillac Escalade, 2021 GMC Yukon, and 2021 Chevy Tahoe all making the list of the Top 20 Fastest-Selling New Vehicles In July 2021.
GM Q2 2021 Global Deliveries
* Vehicle deliveries in thousandsQ2 2021 / Q2 2020 | Q2 2021 | Q2 2020 | YTD 2021 / YTD 2020 | YTD 2021 | YTD 2020 | |
---|---|---|---|---|---|---|
Global Deliveries | 20% | 1,757 | 1,467 | 20% | 3,501 | 2,922 |
North America | 41% | 794 | 565 | 20% | 1,540 | 1,284 |
- U.S.A | 40% | 688 | 492 | 20% | 1,330 | 1,110 |
Asia/Pacific, Middle East and Africa | 4% | 875 | 845 | 21% | 1,755 | 1,449 |
- China | 5% | 751 | 714 | 30% | 1,531 | 1,176 |
South America | 54% | 88 | 57 | 8% | 206 | 190 |
- Brazil | 25% | 50 | 40 | -7% | 125 | 135 |
GM Stock Value Macro Factors – Earnings
GM’s Q2 2021 earnings results were recently released, headlined by $2.8 billion in income on $34.2 billion in revenue. The figures represent a 450-percent jump in income and 103-percent increase in revenue.
Earlier in the year, GM reported its 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 Q2 2021 Earnings Summary
Figures in billions of USD, except for per share amounts and percentages.METRIC | Q2 2021 | Q2 2020 | Q2 2021 - Q2 2020 | % CHANGE Q2 2021 / Q2 2020 |
---|---|---|---|---|
GAAP METRICS | ||||
REVENUE | $34.2 | $16.8 | $+17.4 | +103.6% |
NET INCOME | $2.8 | $(0.8) | $+3.6 | +450% |
EARNINGS PER SHARE (EPS) DILUTED | $1.90 | $(0.56) | $+2.5 | +439.3% |
NON GAAP METRICS | ||||
EBIT-ADJUSTED | $4.1 | $(0.5) | $+4.6 | +920% |
EBIT-ADJUSTED MARGIN | 12.0% | 3.2% | 8.8% | N/A |
ADJUSTED AUTOMOTIVE FREE CASH FLOW | $2.5 | $(9.0) | $11.5 | +127.8% |
EPS DILUTED - ADJUSTED | $1.97 | $(0.50) | $+2.5 | +494% |
DIVISIONAL RESULTS | ||||
GM NORTH AMERICA EBIT-ADJUSTED | $2.9 | -$0.1 | $+3.0 | +3000% |
GM NORTH AMERICA EBIT-ADJUSTED MARGIN | 10.4% | -0.9% | 11.3% | N/A |
GM INTERNATIONAL EBIT-ADJUSTED | -$0.3 | -$0.4 | $+0.1 | +25% |
- CHINA EQUITY INCOME | $0.3 | $0.2 | $+0.1 | +50% |
GM FINANCIAL EBT-ADJUSTED | $1.6 | $0.2 | $+1.4 | +700% |
CRUISE | -$0.3 | -$0.2 | $-0.1 | -50% |
GM Stock Value Macro Factors – Products
General Motors recently the debuted the refreshed 2022 Chevy Silverado 1500, which introduces a raft of changes and updates over the preceding 2021 model year and pre-refresh 2022 Chevy Silverado 1500 Limited, such as an all-new interior, updated technology, and the new Silverado ZR2 off-roader.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, surpassing the $64 mark the second week of June and 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). The first 2022 Cadillac Blackwing sedans are now arriving at dealers.
Much of the upward momentum in GM stock value seen in January was 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. In late June, 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.
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
Headlines continue to be dominated by the ongoing global microchip shortage, with numerous production stoppages around the globe. SAIC-GM-Wuling, however, has announced that it is developing its own microchips, which could help to soften the blow of future chip shortages. GM CFO Paul Jacobson also indicated that the chip supply is expected to even out sometime next year as suppliers catch up to demand.
Recently, GM announced new production stoppages at several of its North American facilities, including Wentzville, Lansing Grand River, Lansing Delta, and Ramos Arizpe, among others. The new production stoppages affect a broad variety of GM vehicles, including the the Chevy Colorado, GMC Canyon, Chevy Camaro, Cadillac Blackwing sedans, Chevy Traverse, Buick Enclave, and Chevy Blazer.
GM also recently announced that production of some of the company’s most profitable vehicles, the Chevrolet Silverado 1500 and GMC Sierra 1500, will be halted for a week due to the ongoing microchip shortage. Production of the Chevy Colorado and GMC Canyon midsize pickups will also be paused, while downtime extensions have been announced for several crossover plants.
Experts are now predicting that the semiconductor crisis could last in 2023. In addition, the most fuel-efficient engine available in GM’s full-size trucks and SUVs, the Duramax turbodiesel 3.0L LM2 inline-six, has also seen production come to a halt due to supplier issues. As production of GM’s six-speed automatic transmission winds down, the company announced that it will be laying off workers at its Toledo Transmission Plant.
The ongoing global microchip shortage has resulted in production delays earlier in the year, including Lansing Delta Township and Lansing Grand River in Michigan, Ramos Arizpe Assembly and San Luis Potosi Assembly in Mexico, Spring Hill Assembly in Tennessee, and CAMI Assembly in Canada. The delays affect production of numerous models, including the Cadillac XT5, Cadillac XT6, GMC Acadia, Chevy Blazer, Chevy Equinox, GMC Terrain, Cadillac CT4, and Cadillac CT5.
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 of May. That figure has risen considerably in the following months, with recent estimates putting the number close to 800,000.
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.
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.
GM Stock Value Micro Factors
GM recently announced that it will replace the battery modules on roughly 50,000 units of the 2017 though 2019 Chevy Bolt EV affected by a potential fire risk. The automaker then decided to extend the battery replacement on all model years of the Bolt EV in addition to the all-new Bolt EUV. The recall is estimated to cost upwards $1.8 billion. Despite the fault laying with battery producer LG Energy Solution, GM CEO Mary Barra announced that GM will continue its relationship with LG going forward.
Several other GM recalls have also been announced in recent months, the most significant of which involves roof rail airbags that could rupture in more than 400,000 units of the Chevy Silverado and GMC Sierra, followed by a block heater cable short circuit issue in some 330,000 units of the Silverado HD and Sierra HD.
In legal news, a class action lawsuit filed against General Motors regarding oil consumption issues for the 5.3L V8 was dismissed in Virginia. Additionally, General Motors and its autonomous vehicle subsidiary, Cruise, are suing Ford over use of the name ‘BlueCruise.’
In political news, the Biden administration recently proposed a new EV incentive offering point-of-sale rebates on new electric vehicles. Earlier this year, lawmakers urged the EPA to reinstate California’s right to set its own vehicle emission rules, while the Biden administration is urging automakers to ensure that their vehicle lineups consist of at least 40 percent EVs by 2030.
Good news recently came out of Asia, as GM Korea recently reached an agreement with workers regarding a wage increase. In America, the greater auto industry, including the UAW workers union and major manufacturers like General Motors, previously called on 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, only to later rescind some of those gains and fall below the $50-per-share mark.
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.
Month | Opening Value |
---|---|
January 4th | $41.95 |
February 1st | $51.46 |
March 1st | $52.41 |
April 1st | $57.92 |
May 3rd | $57.60 |
June 1st | $59.99 |
July 1st | $59.44 |
August 2nd | $57.03 |
September 1st | $49.15 |
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.”
GM stock value began to slide around mid-June, dipping below the $60-per-share mark in July. Now, in September, GM stock value remains around $50-per-share.
We’ll continue to stay on top of all the latest developments related to GM stock, so be sure to subscribe to GM Authority for ongoing GM stock news and complete GM news coverage.
Comments
@C8.R well 3 weeks in a row of gains after I said GM stock was oversold… hmmm, at some point you might have to say, ya, he was right… This next week will be interesting, HummerEV is breaking cover, and GM will be preparing for their investor day event the following week, something tells me we are going to get a surprise reveal in the next 10 days? Will it be Silverado EV, or an Equinox sized BEV crossover? I think it will be the crossover. Couple that with brutal Q3 sales which will be announced on October 4th and who knows where the stock will go, but I expect to be up 10% more by late October.
everyone knows about the hummer ev. and i don’t think if they announced more ev models that will move the needle.
stock will move if ev credits that favor gm gets passed. also, brightdrop looks promising. maybe some favorable news will come from that.
BrightDrop does look promising, and EV credit package would be nice, but the HummerEv starting production earlier than expected will move the needle, not for what it means financially (nothing), but for what it means about GM’s execution. The big concern right now on Wall Street is GM has made lots of announcements, but really nothing materiel to show for it, Hummer is the first, BrightDrop the second. Launching those on time, and to favorable reviews will be a shot in the arm for GM stock.
On the announcements, GM showing another EV, would give the stock a boost (the Silverado Ev the biggest boost, but I do not expect to see that until November) GM stock right now it trading at 6X current year earnings which is the lowest of any American Automaker, and 7.5X forward year earnings estimates, this is very weak P/E ratio, so that means the problem is faith in GM’s strategy and execution, most people on Wall Street now have more faith in Ford 16 P/E ratio or TSLA with a 400 P/E ratio. (higher P/E ration shows more faith in forward earning growth) GM needs to show progress at their investor day (Oct 6-7) on the Cruise Automation, and EV development and the stock will likely pop to new all time highs soon after. Most investors know the Q3 sales are going to be weak, and that has been priced in.
i think brightdrop is really exciting. as far as i know, gm is amongst the few in this space.
and i don’t know if/how ev tax credits apply to commercial vehicles. if they don’t, they should and the infrastructure bill should fix that and gm will be one of the few to be able to take advantage.
i don’t understand cruise automation being in the business of transporting people. it seems like low margin and fraught with potential problems. transporting goods on the other hand, that makes a lot of sense.
Ya, BrightDrop is a great business, Rivian is also already delivering their electric vans to Amazon, and others are entering their space as well. Rivian has orders for 100K vans from Amazon, and if that goes well Amazon needs about 500K more, so Rivian likely will just feed 1 customer for the next 10 years, and by that time Amazon will need replacements.
Cruise Automation is simple to understand, think UBER without drivers… What is the biggest cost for UBER? Yup, drivers…
but the cost of the driver includes the cost of vehicle. uber/lyft doesn’t have to pay for their upkeep. gm is going to make money maintaining an army of robotaxis? and that is assuming cruise performs as well as a good driver. good luck.
Thats the challenge, making a robot drive as well as a human, its not easy. But Cruise has cars on San Francisco streets every day with no driver in the car. I have seen them a few times, they are very cautious, but navigate just fine.
For investor day, We are overdue for the Cadillac Celestiq. If it is in fact that, not only would it be a victory lap for Cadillac right after the Lyriq “selling out” all of it’s reservations but the vehicle is expected to showcase GM’s new-found tech prowess outside of the battery tech.
Yes, that is true, Celestiq will likely be shown, and will have all of GM’s next gen technologies in it, including level 3 autonomy (ultraCruise), and I predict that Yoke GM design showed a while back that can retract into the dash. .
Lyriq is going to do well on the market as its a good looker. On technical specs though, it’s not a world beater.
Your not an investor so don’t worry about it.
haha, I have a big stake in GM
You know what might else be coming soon, is the EV Escalade, GM showed the concept to media and investors almost 2 years ago, and I have not heard a peep since… Hmm!
i think the narrative has changed with ev’s. it isn’t about models coming out but about demand. will the demand live up to the hype. and the biggest thing to boost demand is tax incentives.
Interesting, but failed comment, Tesla is running their factories 24/7 365, and cannot keep up with demand with no incentives. Tesla is increasing sales YOY 75% this year. The problem is not demand for EV’s it’s the quality and desirability of the EV’s on the market.
GM EV’s have battery problems, weak tech, uncomfortable seats, people would be a fool to buy them without major incentives. Just buy a Tesla, and you will be smiling every time you drive it. OH ya, there are no Tesla’s available until March 2022, they are sold out that far ahead. Used Tesla’s sell for more than new right now there is so much demand.
The biggest thing to boost demand in EV’s is build good ones that have the specs, and tech, and price them right. Basically watch Tesla, they will show you how to do it.
so just read a review of the vw id4 on car and driver. it looks nice … reminded me of a honda cr-v.
then i get to the price, $44K base and as tested it was nearly $50K. even with incentives, is that better than a hybrid cr-v? i would say no.
tesla is an outlier. you can’t say tesla is representative of the industry as a whole. also tesla still gets incentives outside the US … especially europe. look at the bolt even before the battery problems. demand was a huge issue.
we’ll see if the demand is there. just because you build it, doesn’t mean people will buy it.
ID4 is much larger than a CRV on the interior, quicker, and a good first step for VW, but nothing special. VW is doing well with ID4 so far, but not Tesla Y level of demand. ID4 sells to first time EV buyers, Bolt and Leaf buyers, but not Tesla buyers. Tesla is just better in almost every EV metric (range, charging, and efficiency)
Bolt has a few problems beyond the battery issues, gangly looking, FWD, interior is like playskool toys quality (2022 is better) At lest VW made ID4 RWD so it has some nice handling, and no torque steer.
Tesla is an outlier? Tesla is 25% of the global EV market, and 60%+ of the US Ev market, thats not an outlier, thats the dominant player.
outlier in the sense i wouldn’t extrapolate tesla’s success and apply it to the rest of the ev market.
if you want to see gm’s stock tank, strip out the ev incentives for gm in the next stimulus. w/o it, gm’s ev future will be on life support.
@Donavan
Telsa cannot be compared to others. They are on an Island All alone. As I have stated multiple times for many years on this thread, Tesla will be selling 5 Million vehicles by 2025 and I was laughed at but it will 100% happen….if not even more. Tesla is basically Apple.
All I care about is for GM to not allow VW to leapfrog them in the new Race which is BEV’s. It is an all out battle for basically second place. And I want that to be GM obviously.
Did you see Ford’s announcement today? Huge….
@steve
The VW ID.4 Dual Motor is waaaaaaaaay better than any CR-V or Rav4 Hybrid.
It isn’t even close. The only issue with the ID.4 is the lack of a Frunk
Donovan follow the line buddy and see who my comment was to.
I wonder when Ford and GM will start paying Dividends again.
Not for a while, all the $$$ going into growth…