GM Stock Value Rises 6 Percent During Week Of December 6 – December 10, 202112
The value of GM stock was up during the week of December 6th to December 10th, 2021, compared to the stock’s closing value the week prior. Shares closed this week at $63.21 per share, representing an increase of $3.50 per share, or 5.86 percent compared to the previous week’s closing value of $59.71.
Movement & Range
By comparison, shares of GM’s cross-town rival, Ford Motor Company, increased 12.1 percent, or $2.31, during the same timeframe.
GM Stock Factors
GM stock value rose slightly this week after three weeks of losses.
Some of the factors affecting GM stock value this week include updates on the EV front, including an executive order signed by President Biden that calls for an end to the purchase of fossil fuel fleet vehicles by 2035. GM also confirmed that the hotly anticipated all-electric Chevy Silverado EV will enter production in early 2023, while opening the first brick-and-mortar BrightDrop dealership in California. As for EV production, GM announced that it will source rare earth materials from MP Materials, as well as a $51 million investment for Chevy Silverado EV drive units and a new partnership to build a new magnet factory in the U.S. Construction of the Ultium Cells battery plant in Tennessee is also on schedule.
In further production news, GM is now running overtime at some U.S. plants as microchip supplies show some improvement.
GM Stock Value Macro Factors – Strategy
General Motors continues to drive towards the mass adoption of all-electric vehicles. Recently, the automaker hosted the grand opening of its new GM Factory Zero production facility in Michigan, GM’s first dedicated all-electric vehicle assembly plant. The first product set to roll of the line will be the 2022 GMC Hummer EV Pickup. GM CEO Mary Barra rang the NYSE opening bell from the factory floor the morning of the plant’s opening, and President Biden visited for a tour, driving the new Hummer. GM stock value rose to $65 per share following the opening. GM later revealed that reservations for the GMC Hummer EV rose considerably in November following the media event.
During the previous GM Investor Day event, GM announced several future plans regarding its business, strategy and products. It expects to double its revenue by 2030 through new software platforms and connectivity, as well as the integration of OnStar Insurance with the vehicle purchase process.
To help ramp up EV production, GM has announced a new joint venture with POSCO Chemical to process materials for the automaker’s Ultium batteries. GM is also exploring the possibility of manufacturing EVs in Egypt.
Thanks to its electric and autonomous vehicle strategy incorporating Ultium batteries and Ultium Drive powertrains, investor firm Tudor Pickering raised its GM stock price target from $75 to $95. On the money side of business, General Motors will launch Cadillac Financial in 2022, creating a more customized experience for Cadillac luxury brand shoppers.
Last year, 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. GM CEO Mary Barra has stated that General Motors could catch up to Tesla in EV sales by 2025, while also announcing plans to build 40,000 new charging stations throughout North America. GM has also made a commitment to phase out fossil fuel vehicles by 2040.
GM previously announced an increase in EV and AV investment, with a whopping $35 billion earmarked between now and 2025. More recently, GM laid out its plans to roll out new software such as the Future Roads data platform, enhanced subscription services, and the expansion of the OnStar Insurance service to all 50 states by 2022. GM’s Cruise autonomous vehicle brand is expected to rake in $50 billion over the coming years. On the production front, half of all GM North American and Chinese production facilities will be capable of producing electric vehicles by 2030. GM also announced details for hotly anticipated future products like the Chevy Silverado EV.
GM Stock Value Macro Factors – Sales
General Motors previously reported its third-quarter sales figures, headlined by a 33-percent decrease in sales in the U.S., down to 446,997 units. Sales decreased at all four of GM’s U.S. brands. GM cites supply disruptions resulting from the ongoing global microchip shortage, but adds that supplies are “improving.”
General Motors 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.
GM China sales were down 19 percent in Q3 2021 and GM Mexico sales dropped by 30 percent in September. On a brighter note, SAIC-GM-Wuling’s fully electric minicar in China, the Wuling Hong Guang MINI EV, recently reached the milestone of 400,000 units produced since its launch in 2020.
Previously, second-quarter sales were headlined by a 40-percent jump in the U.S., with sales increasing for all four of GM’s U.S. brands. Further back, 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 Q3 2021 Global Deliveries* Vehicle deliveries in thousands
|Q3 2021 / Q3 2020||Q3 2021||Q3 2020||YTD 2021 / YTD 2020||YTD 2021||YTD 2020|
|Asia/Pacific, Middle East and Africa||-20%||719||903||-7%||2,474||2,674|
GM Stock Value Macro Factors – Earnings
GM’s Q3 2021 earnings were headlined by $2.4 billion in income on $26.8 billion in revenue, a 40-percent decline in income and 25-percent decline in revenue. Investors reacted with disappointment to the automaker’s 2021 profit forecast in the wake of the ongoing global microchip shortage and increasing commodity prices. Some good news on the manufacturing front, though, as GM recently raised its profit outlook on the back of an improvement to the microchip shortage.
Previously, GM’s Q2 2021 earnings results were 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 Q3 2021 Earnings SummaryFigures in billions of USD, except for per share amounts and percentages.
|Q3 2021||Q3 2020||Q3 2021 - Q3 2020||% CHANGE Q3 2021 / Q3 2020|
|EARNINGS PER SHARE (EPS) DILUTED||$1.62||$2.78||$-1.2||-41.7%|
|NON GAAP METRICS|
|AUTOMOTIVE OPERATING CASH FLOW||-$2,602||$9,935||-$12,537||-126.2%|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||-$4,385||$9,122||-$13,507||-148.1%|
|EPS DILUTED - ADJUSTED||$1.52||$2.83||$-1.3||-46.3%|
|GM NORTH AMERICA EBIT-ADJUSTED||$2,125||$4,366||$-2,241||-51.3%|
|- GM NORTH AMERICA EBIT-ADJUSTED MARGIN||10.3%||15.0%||-4.7%||N/A|
|GM INTERNATIONAL EBIT-ADJUSTED||$229||$10||$+219||+2190%|
|- CHINA EQUITY INCOME||$270||$262||$+8.0||+3.1%|
|GM FINANCIAL EBT-ADJUSTED||$1,093||$1,207||$-114.0||-9.4%|
GM Stock Value Macro Factors – Products
General Motors recently unveiled several new concepts at the 2021 SEMA Show in Las Vegas, including the Chevy Beast off-roading concept, the all-electric Chevy Project X, and the Silverado High Country Midnight concept.
Previously, GM debuted the fully refreshed 2022 GMC Sierra 1500, which includes two new trim levels, new styling, the latest technology features, and more. GM also recently unveiled the new Chevrolet Performance ZZ632 crate engine, as well as the new 2023 Chevy Corvette Z06 sports car.
GM has also debuted the BrightDrop EV600 all-electric light commercial vehicle. The new van is the fastest-developed vehicle in GM history. The EV600 will be joined by the smaller BrightDrop EV410. Merchant Fleet recently placed an order for 5,400 units of the new EV410.
On the software front, GM debuted its new Ultifi end-to-end software platform, designed to provide the latest upgrades and features to future GM vehicles via over-the-air updates.
Even more critical is the debut of 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.
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.
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.
What’s more, GM announced the new Ultra Cruise autonomous driving system, which promises true “door-to-door hands-free driving” capabilities in 95 percent of all driving scenarios, with plans to eventually make the system available on every paved road in the U.S. and Canada.
GM Stock Value Macro Factors – Events
The 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 in the hopes of avoiding future shortages. That includes the development of new microcontrollers.
In the meantime, GM has announced that it has shipped half of the pickup truck models stockpiled per the automaker’s “build-shy” strategy. SAIC-GM-Wuling 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. Experts are now predicting that the semiconductor crisis could last in 2023.
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. More recently, however, GM announced that production of the 3.0L I6 LM2 turbodiesel Duramax engine for GM’s full-size SUV lineup had resumed.
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.
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.
However, GM has announced that it will retrofit models affected by the deletion of certain comfort features as a result of the chip shortage, including heated seats and heated steering wheels.
GM Stock Value Micro Factors
The General previously announced that LG Electronics Inc. has agreed to over $1.9 billion of the $2 billion in costs associated with the replacement of the recalled Chevy Bolt EV and Chevy Bolt EUV battery packs. A new software update related to the recall was also recently issued. GM has announced that Chevy Bolt EV and Bolt EUV production will be offline for the remainder of the year.
GM previously 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 later decided to extend the battery replacement on all model years of the Bolt EV, in addition to the all-new Bolt EUV. 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, came to a settlement after filing a lawsuit against Ford over its BlueCruise highway driving assistant system. A judge recently tossed out a lawsuit filed by General Motors against Fiat Chrysler/Stellantis regarding accusations regarding a labor conspiracy, however, FCA has now accused GM of corporate espionage.
In political news, General Motors voiced support for the EPA’s proposed emissions rule changes. GM also indicated that it is on track to hit carbon neutrality for its U.S. operations by 2025, five years earlier than originally announced. 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. Further good news comes from Mexico as well following the resolution of a labor dispute at the GM Silao production facility. 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. Now, GM stock value is back on the rise, hovering above the $60-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.
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. In September, GM stock value remained around $50-per-share, rising considerably in the first few weeks of October. Now, GM stock value is back on the rise in November, settling around $60 per share in December.
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.
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Nice week in the market, GM performed well, once again though Ford did better. I think the excitement for GM shareholders is just getting started, lots of catalysts in the next 30 days, will my prediction of $68+ by Jan 15th happen? If I was a betting man, I would be pushing the over on that one.
*HummerEv deliveries to customers the week coming up
*Supercruise latest generation getting rave reviews (motor trend called it “Spooky-Good” in the HummerEV)
*Q4 deliveries (down from last year, but much stronger than Q3, and Model Mix stronger.
*CES announcements (SilveradoE, EquinoxE, maybe more?)
Announcements don’t make cars. There will be no new cars or trucks coming out. No Bolts, Sliverado E ain’t coming till 2023!
A few Hummer deliveries maybe. Dealer lots are almost empty. Any trucks on those lots are the ones that were roasting out in the sun for months waiting for parts. gm is running out of tricks and also cars. They should do better.
Stock prices are based on future earnings mainly, and not as much the present. FYI, GM production right now is much higher than it was 3 months ago, and most North American plants are running normal schedules. Flint, Ft Wayne, and Arlington are on mandatory overtime.
GM could shut Bowling Green down forever and it would hardly be noticed on the earnings statement… Thats a very small example of a headwind for the stock.
Dealer lots are going to be mostly empty well into the future, GM (and just about every other OEM) is changing its selling strategy, having cars sitting on a lot waiting for customers to buy them is expensive and wasteful. The future for most people will be to order their car, and get it delivered directly to their home when it is built. Some people will still want to do test drives and go to a dealer, they will just pay more for their cars to reflect the real cost of that privilege. In surveys over 60% of new car buyers say they never want to go to a dealership (this number is growing every year as less and less people want to visit a dealership). See there is a reason Amazon has grown explosively, and Sears, K-Mart, and others are gone (efficiency, and convenience). In the future dealerships can downsize their land and staff, as giant lots full of cars, and staff to keep them clean won’t be needed as the system becomes more efficient.
i don’t think your predictions will hold in a down economy when supply exceeds demand.
We are a long way from that, in case you did not look the economy is booming, supply shortages are the only thing holding us back.
But Steve, I think GM is grossly undervalued, and as the value of the company is understood, and valuations adjusted there is a lot of upside from here. I would not be surprised to see GM stock hit $100 or more by the end of 2022, and possible more if GM keeps executing on Cruise , and EV’s.
after the boom comes the bust. and the bigger the boom, the bigger the bust!!!
i just hope to be lucky enough to be on the be sidelines when it happens.
$100 would be great but i don’t see how cruise makes money and they certainly are not going to do it in 2022.
gm has yet to produce a compelling mass market EV. the only compelling product in the ev space is brightdrop.
but i hope i’m wrong and gm pulls a rabbit out of their hat. that possibility is the only reason i have money in gm.
True on Cruise, I do not see profit until 2025 at the earliest, but that is a disruptive technology, and investors in disruptive technology care about growth, not profit initially. Once Cruise gets the product working and stable, UBER, and LYFT are toast. Their market cap moves over to GM. GM sold their huge stake in Lyft last year for a reason.
Hummer EV is being produced, and is compelling, GM will not have mass market EV’s until early 2023 when their battery manufacturing gets up to speed, but then the growth will be exponential. I see GM building 150K in 2023, and >300K in 2024, >500K in 2025 in the USA . If GM can maintain their ice business too, WOW, the possibilities are unbelievable. This is really a generational opportunity. I added a lot of GM stock in the last dip, because I think this is gong to be a historical run once the EV/AV thing gets going.
GM is pulling rabbits out of the hat already. Hummer developed on time, battery factories on time, Cruise on schedule. and for naysayers when they see what the new subscription business means to profits 3-5 years down the road the numbers get obscene. BrightDrop, is another growth opportunity, and BrightDrop is more than vans, its also inventory control software subscriptions. IMO you will not even recognize this company in 5 years.
Let’s not forget the Corvette plant is shutdown due to fire and tornado damage. Museum is damaged along with customer cars too. Bad news keeps coming from Bowling Green.
Sounds like a 1 week shutdown, and nobody was hurt…. No big deal, unless you are waiting for a C8, it’s going to be a bit longer.
Just as I predicted 11 weeks ago. I always know what I’m talking about I’m definitely the smartest when it comes down to knowing everything.
GM is well aware of existing competition, but more importantly, concerned with the EV start-ups that are now active. But let’s look at this industry from the early 1950s, when we were only dealing with ICE technology. There were few successful and sustainable ICE start-ups. Instead, the market consolidated. Yes, GM, Ford, and Chrysler had competition but that was from the imports. The ability to make an ICE was the moat that kept out anyone from having a competitive advantage and starting a new, sustainable auto business from the ground up. Now, with the EV era, what determines the ability to start a business? I know right now for example I can get into a supplier’s website and view various EV motor-drive train combinations that are available. Plus, if we are on this website, we are well aware of the battery suppliers in this space. So, the ability to source critical EV components is not a problem. What GM is doing to have a competitive advantage in the EV space. GM is becoming vertically integrated with their EV technology. This takes both time and money. If they are successful, this enables them to bring out the additional EV’s at price points that replace their existing ICE versions. For example, the $30,000 EV Equinox. Yes, I know that once it’s loaded with the options you want it will be closer to 40 grand; but that’s similar to what we have now with the Equinox. Plus, having developed this technology from the Ultium platform to their Ultium Cells; also, has enabled GM to enter into new markets. I never thought that GM was that successful in the commercial vehicle market. Now, they have BrightDrop along with plenty of orders to fill. So, GM’s strategy is first to develop the EV technology along with reshoring much of their supply chain to North America. Second phase will be to monetize that strategy. I would have like to see that happen sooner, but I believe by early 2023 we will see how successful they are. Now with better chip supply, 2022 for the automotive market will be dedicated to ‘replenishment’. Every available vehicle that can be build will be sold, no problem. Waiting for 2023 to see what GM has in store for a high volume EVs should be interesting.
I can tell you right now without you wasting your time waiting for 2023 you wanna know what they have in store? The answer is fire