The value of GM stock was down during the week of February 28th to March 4th, 2022, compared to the stock’s closing value the week prior. Shares closed this week at $42.40 per share, representing a decrease of $5.03 per share, or 10.61 percent compared to the previous week’s closing value of $47.43.
Movement & Range
| Date | Open | Close/Last | High | Low |
|---|---|---|---|---|
| 3/4/2022 | $44.03 | $42.40 | $44.16 | $41.99 |
| 3/3/2022 | $46.21 | $44.90 | $46.74 | $44.90 |
| 3/2/2022 | $44.68 | $46.32 | $46.60 | $46.32 |
| 3/1/2022 | $46.02 | $44.52 | $46.16 | $44.52 |
| 2/28/2022 | $46.24 | $46.72 | $47.12 | $46.72 |
By comparison, shares of GM’s cross-town rival, Ford Motor Company, decreased 5.5 percent, or $0.98 per share, during the same timeframe.
GM Stock Factors
GM stock value was down slightly this week after flat performance last week and losses in the weeks prior.
Some of the factors affecting GM stock value this week included the ongoing conflict in Ukraine, with GM indicating that it was suspending is business in Russia. GM will also donate $250,000 towards refugee relocation efforts. Finally, U.S. President Biden is set to finalize the Buy American rule, which will require goods purchased with taxpayer dollars to be made up of at least 75 percent U.S. content.
GM Stock Value Macro Factors – Strategy
General Motors continues to drive towards the mass adoption of all-electric vehicles, recently announcing a massive $7 billion investment into its Michigan-based production facilities, including $4 billion to convert the Orion Township plant for production of the new Chevy Silverado EV and Sierra EV, $2.5 billion for a third Ultium Cells battery plant, and a further $500 million to support production of the next-generation Chevy Traverse and Buick Enclave. The investment is largest single investment in GM history, prompting responses from the White House, among other groups. GM is now shooting for EV production capacity greater than 1 million units.
GM says it has 59,000 reservations for the new GMC Hummer EV and 110,000 reservations for the Chevy Silverado EV, plus 25,000 reservations for the BrightDrop EV600 and EV410 all-electric commercial vans. GM also recently announced a fourth Ultium Cells battery plant and an upcoming third EV truck plant.
Back in November of 2021, 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 rolling of the line is 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. More recently, GM announced it would add 50 new in-vehicle digital services by 2026, creating a wealth of new potential revenue streams.
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. Construction of the Ultium Cells battery plant in Tennessee is currently on schedule. GM is also exploring the possibility of manufacturing EVs in Egypt, while increasing its investment into the GM Lake Orion Plant from $160 million to a whopping $1.3 billion for expanded EV production.
Back in 2020, 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 also stated that General Motors could catch up to Tesla in EV sales by 2025, while 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 has also announced an increase in EV and AV investment, with a total of $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. SoftBank recently announced a further $1.35 billion investment in GM’s Cruise AV arm.
Further investments include $154 million for the GM Western New York Lockport Components plant to support EV motor component production, while half of all GM North American and Chinese production facilities will be capable of producing electric vehicles by 2030.
Although investors are eager to see GM pivot to EVs, some groups are frustrated by the automaker’s progress. Recently, investment banking company Morgan Stanley dropped its price target from $75 to $55, sending GM stock tumbling in February.
GM Stock Value Macro Factors – Sales
General Motors has reported its fourth-quarter sales figures, headlined by a 43-percent sales decrease in the U.S., down to 440,745 units. Sales at all four GM U.S. brands decreased, with GM saying that it focused on delivering as many high-demand, capacity-constrained products as possible in the face of record-low inventory resulting from the microchip shortage.
GM stock value was up to a record $65.98 per share following the release of GM’s Q4 2021 sales report, rising on the news of better-than-expected sales numbers and optimism regarding improvements in the global microchip shortage. Notably, General Motors is no longer the number-one automaker in the U.S. in terms of sales, ceding the position to Toyota after a 90-year streak.
GM also sold nearly 400,000 units of the MINI EV hatchback in China last year, making it the best-selling electric vehicle in the market.
GM 2021 Global Deliveries
| YTD 2021 / YTD 2020 | YTD 2021 | YTD 2020 | |
|---|---|---|---|
| Global Deliveries | -18% | 6,289 | 7,715 |
| North America | -24% | 2,573 | 3,367 |
| - U.S.A | -23% | 2,218 | 2,888 |
| Asia/Pacific, Middle East and Africa | -10% | 3,322 | 3,679 |
| - China | -7% | 2,892 | 3,094 |
| South America | -41% | 394 | 669 |
| - Brazil | -49% | 242 | 476 |
GM Stock Value Macro Factors – Earnings
The release of the GM Q4 2021 earnings report was highlighted by $1.7 billion in income on $33.5 billion in revenue. Compared to Q4 of 2020, the figures represent a 38.8 percent decrease in income and 10.5 percent decline in revenue. Factors influencing the figures included strong demand for full-size SUVs and pickups, and strong performance from GM’s captive finance arm, GM Financial. GM forecasts $9.4 billion to $10.8 billion in net income and EBIT-adjusted between $13 billion and $15 billion.
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 has raised its profit outlook on the back of an improvement to the microchip shortage. GM is now running overtime at some U.S. plants as microchip supplies continue to show some improvement.
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 last 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 Q4 2021 Earnings Summary
| Q4 2021 | Q4 2020 | Q4 2021 - Q4 2020 | % CHANGE Q4 2021 / Q4 2020 | |
|---|---|---|---|---|
| GM FINANCIAL EBT-ADJUSTED | $1,180 | $1,039 | $+141.0 | +13.6% |
| GAAP METRICS | ||||
| REVENUE | $33,584 | $37,518 | $-3,934.0 | -10.5% |
| NET INCOME | $1,741 | $2,846 | $-1,105.0 | -38.8% |
| EARNINGS PER SHARE (EPS) DILUTED | $1.16 | $1.93 | $-0.77 | -39.9% |
| NON GAAP METRICS | ||||
| EBIT-ADJUSTED | $2,839 | $3,712 | $-873.0 | -23.5% |
| EBIT-ADJUSTED MARGIN | 8.5% | 9.9% | -1.4% | 11.3% |
| AUTOMOTIVE OPERATING CASH FLOW | $9,384 | $5,243 | $4,141 | +79% |
| ADJUSTED AUTOMOTIVE FREE CASH FLOW | $6,403 | $3,433 | $2,970 | +86.5% |
| EPS DILUTED - ADJUSTED1 | $1.35 | $1.93 | $-0.6 | -30.1% |
| DIVISIONAL RESULTS | ||||
| GM NORTH AMERICA EBIT-ADJUSTED | $2,165 | $2,612 | $-447.0 | -17.1% |
| - GM NORTH AMERICA EBIT-ADJUSTED MARGIN | 8.1% | 8.7% | -0.6% | N/A |
| GM INTERNATIONAL EBIT-ADJUSTED | $275 | $283 | $-8.0 | -2.8% |
| - CHINA EQUITY INCOME | $244 | $248 | $-4.0 | -1.6% |
- Figures in millions of USD, except for per share amounts and percentages.
GM Stock Value Macro Factors – Products
GM stock value was on the rise early in January with the introduction of several new GM EVs in conjunction with the 2022 Consumer Electronics Show, highlighted by the 2024 Chevy Silverado EV. GM stock value rose to a record high of $67.21 per share following a keynote speech delivered by GM CEO Mary Barra. Following the event, Barra indicated that reservations for the Silverado EV RST First Edition were filled in just 12 minutes. Further announcements at CES 2022 included the Chevy Equinox EV and Cadillac InnerSpace AV concept.
More recently, General Motors unveiled the new 2023 Cadillac Escalade-V, a high-performance version of the iconic luxury SUV with a supercharged V8 engine, while previously, General Motors 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.
Late in 2021, 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 is now offering 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.
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.
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 previous 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 has 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 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. 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.
In January, the Biden Administration pushed Congress to pass a $52 billion microchip production bill aimed at alleviating the ongoing shortage. GM has also 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, only to retrofit those features at a later date.
Looking ahead, strong demand for new cars is expected to continue in 2022, while new vehicle incentives are down to a five-year low amid low inventory.
General Motors CEO Mary Barra has indicated that there are no plans to return GM inventory to pre-pandemic levels, making GM leaner and more efficient.
Unrelated to the chip shortage, production at GM’s Delta Township plant is now down as a result of the Ambassador Bridge blockade, with additional production cut at the GM CAMI plant, Flint Assembly, and Spring Hill.
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. General Motors has also announced a new battery software update for the recalled Chevy Bolt EV and EUV. However, a lawsuit against the automaker was recently filed regarding the recall. GM has announced that production downtime for the Chevy Bolt EV and EUV will be extended through February.
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.
The National Highway Traffic Administration (NHTSA) recently closed its investigation into the recent Chevy Bolt and Bolt EUV fires.
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 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 has proposed a new EV incentive offering point-of-sale rebates on new electric vehicles, while also outlining a plan to build-out the nationwide EV charging infrastructure, recently detailing a $5 billion EV charging network plan. California can once again set its own emissions guidelines, while the Biden administration is urging automakers to ensure that their vehicle lineups consist of at least 40 percent EVs by 2030. Biden also recently signed an executive order calling for an end to the purchase of fossil fuel fleet vehicles by 2035, while the finalization of stricter emissions requirements is expected to speed up electric vehicle adoption.
The greater auto industry, including the UAW workers union and major manufacturers like General Motors, have 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.
GM stock value recently fell following the announcement that Dan Ammann was stepping down as CEO of the GM-backed autonomous vehicle startup Cruise. Ammann’s departure was the second high-profile executive shakeup in a week, following the departure of GM innovation head Pam Fletcher.
Stock Performance Year-To-Date
GM stock value increased considerably over the course of 2021, only to later rescind some of those gains and fall below the $50-per-share mark. GM stock value was back on the rise later in the year, hovering around the $55- to $60-per-share mark in December before breaking into record highs in January, peaking at $67.21 following CES 2022. In February, GM stock value fell back around the $50-per-share mark, dipping below the mark later in the month to open at $46 per share in March.
| Month | Opening Value |
|---|---|
| January 3rd | $59.87 |
| February 1st | $52.85 |
| March 1st | $46.02 |
GM stock value saw steady gains throughout the month of March, 2021, 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. As of January, 2022, GM stock value has settled around the low $60-per-share mark.
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
GM needs to force all dealerships to eliminate “market adjustments”.
From all that’s been written on this topic I’ve gotten the firm impression that GM – and likely Ford – cannot dictate the final sales price of a new vehicle. So, the only teeth they have is to limit allocations and frankly I’m not sure how far they can go on that before dealers start filing lawsuits. In the end though it would be great to be able to believe “MSRP”
“S” = SUGGESTED…..
Those letters done mean a dam thing. Ford sent those same letters for the bronco and Mach e and the Shelby’s, dodge sent them for the demon and hellcats, gm sent them for the C8, Toyota sent them for the Supra. Dealerships are independent and laws passed many decades ago protect them. These companies can send whatever they want saying they will do this or that at the end of the day it doesn’t hurt anyone but the customer and nothing will be different with this.
In Nevada the state legislature has enacted franchise protection laws in the statutes and codes protecting franchisees from corporate undertakings such as this and pulling dealer agreements for underperformance or whatever. The only way corporate can terminate a dealer in Nevada is through gross fraud or law disregard, and through a corporate bankruptcy reorganization. GM and Chrysler offed many of their out of favor and small Nevada car dealers that they disliked when they took out bankruptcy. Ford not filing bankruptcy was stuck with several dealers that they wanted to off. Some of these Ford dealers have since sold out to owners favored by Ford.
Anyone thinking that this might be the whole EV future caving in as we come to grips with reality that we need oil period?
Jake
Spoken like a good Russian. Comrade Vladimir Putin will be real happy with you. Keep it up and one day you may get to see your family again.
@ Peter G
Spoken like someone who reeks of white privilege.
@Peter
Are you in middle school?
@ Peter G
Nope I just always call out those who benefit from white privilege.
@Peter
White privilege is not bad thing. Everyone should have it. Your statements indicate that you haven’t put any thought into your insults. More like you’re repeating someone else’s words.
@ Peter G
I’m sure you don’t think white privilege is a bad thing. Why would you when it benefits you on a daily basis.
Peter
So what are you trying to say?
@ Peter G
It’s pretty clear what I’m saying. White privilege equals trash which in turn means you equal trash.
Peter
It’s a Monday, I don’t get trashed on Monday unless theirs a game on. What are you really trying to say.
You need to get into the real world Peter G….How do you generate electricity…..our current electric grind couldn’t begin to support 200,000,000 electric vehicles…including ALL emergency vehicles…fire rucks, ambulances, police cars, taxis, buses, etc.,….GM says in 10 years it will not be building ANY ICE powered vehicles…REALLY……
So my question….how do you generate electricity…..Coal is on it’s way out, no more coal fired power stations…..hydro power is also dying due to drought and fires…. look at the western states last year….Lake Mead is down over 100 feet….no generators running……brown outs, fires, power outages in those states, leaning power poles everywhere as electric companies refuse to put utilities underground in existing communities and when the wind blows, out goes the power……so this leaves oil, which we are trying to get away from, and lastly…natural gas…both of which have to be burned…….the demand on our electric grind will double every five years when virtually EVERYTHING has to be electric powered from vehicles, to homes, hospitals, to….our military….an electric Abrams, or F35….REALLY……..so ……enter
Nuclear Power Plants….to generate electricity…….I wonder how 100 Nuclear Power Plants in the US alone will affect the environment……
John M. Engelman
Crude Oil is not forever. Oil wells dry up every day. New oil wells are going after lesser grades of oil. That’s increasingly hard to extract. In 40 years we went from light sweet Texas crude to North Alberta tar sands, and even if we stopped selling gas and diesel powered vehicles today, it would take 20 more years until we can ween ourselves off of oil.
Wind, Solar and Hydro are forever. They are also the cheapest ways to produce electricity. Expect electricity production from Wind Turbines and Solar panels to skyrocket in coming years.
The average American drives 40 miles a day. As long as everyone doesn’t charge at once. The extra power demand shine manageable.
Peter G
Wind, Solar, and Hydro make up less than 5% of our total fuel supply and as demand escalates they will fall further behind. We are looking at the World Population DOUBLING in 22 years. That’s tragic! Man is his own worst enemy and it’s in his nature to destroy himself because he simply can’t apply “common sense”!
There is simply no way in hell that our current electric grid can sustain the electric demands of total electric vehicles in the future without a new source (nuclear) of generating electric power. Until we can get past Hurricanes, Tornadoes, Winter storms, drought, wildfires, and anything else that causes power outages that last for days we simply do not have the power availability.
Please do not make stupid statements like “the average American drives less than 40 miles a day”….The average American drives to the corner to mail a letter also but this is all subjective…
If we had maintained a 1st rate nationwide passenger rail service system similar to Europe, Japan, and China, with electric powered engines that could transport 200-300 passengers in a fast, safe, and comfortable environment, from coast to coast, and other destinations in the USA on a daily basis. Think how many fuel burning passenger jet planes that would take out of the skies, But we didn’t…….
To even think about 20 million electric trucks on our nations highways is ridiculous……If we really cared these trailers would be on rail freight….all interstate freight should be by rail creating millions of jobs at new rail freight yards, keeping truck drivers at home every night with their wives and kids, and delivering this freight in the state they live with electric powered trucks….
We could simply mandate that all rail freight is transported by electric trains….remember the PRR’s GG1’s, but the electric power would be provided by rail, not catenary…..
The sad fact is that this country can’t get past it’s political differences to do what’s right for the country. This is the GREATEST country on earth and we can accomplish ANYTHING if we leave politics and greed out of it. Build that 21st Century Electric grid nationwide now, and power it with 21st century power…Nuclear Power…….
John M. Engelman
Fact 1: GM designed the Chevy Volt so the average American could do his daily drive on electricity alone. Without having to stop and recharge.
*40 miles*
Fact 2: The world population will not double. Right now we have just under 8 Billion on earth, and most countries aren’t having enough babies to sustain their current population. Most experts are now saying world population will top out at 9 billion. Dropping quickly after that.
Fact 3: the U.S generates 22% of its electricity from renewables. If current growth rates continue we will be up to 40% renewable by the end of the decade.
Generating renewable energy is pointless if you can’t store it… The future of renewal energy is dependent on viable energy dense storage, which isn’t batteries… It’s hydrogen.
What does Putin have to do with it? According to the White House we are only buying 10% of our oil from Russia. As usual you sound like a fool who says things in hopes of getting a reaction. Hopefully one day everyone stops responding to you so you can finally go away and crawl back in your hole.
1% from Russia is way too much considering we have the ability to be energy independent…..
Jim
Vladimir Putin is famous for shirtless selfies. Where he’s covered in baby oil. Russia is a large exporter of oil. So, like your parents, it’s all related.
So again what does any of that have to do with russia? The White House has said only 10% is coming from them and plans are being made to completely stop buying oil from russia. So you are telling me you can’t answer the question right?
Jim
Most Russian Crude Oil comes from Central Asia, and is transported through pipelines ending in Europe. Most of the rest of the world oil is shipped by SuperTankers
If the Russian pipelines get shut down, a large number of these Supertankers will change course and unload in Europe. Driving up oil prices all over the world
Oh well I trust my president and I believe he knows what he is doing. The president and congress know that if prices get to high there will be unrest and I choose to believe they won’t let it get to that point.
Jake,
I think that’s right. GM has wedded their future to a world where America shuts down their own oil production, restricts supply, and artificially raises prices so as to drive demand for EVs. The winds in Washington show signs of shifting though. John Kerry is openly worried about it. He’s worried that the Russia situation will shift America’s focus back to energy production, to energy independence at home and to helping supply Europe. That sorta pushes the Global Warming narrative and urgency for electric cars somewhat to the side. Elon Musk also tweeted that it might be bad for Tesla but he thinks America needs to refocus on full domestic oil production.
If these winds of change manifest themselves to action and we do see a shift in thinking on both sides of the aisle in the nation’s capitol and a resultant resurgence of America’s energy sector it won’t be good for gm’s push to get ‘everybody in’ one of their EVs. My guess is the market is reacting to that possibility. I’ve always thought Mary Barra’s single-minded focus on EVs could prove disastrous if the world changes before she gets her cars and trucks to market.
Roger B. Smith’s GM planned for $5.00 gasoline in the mid eighties and radically shrunk all their cars so as to meet that challenge. That world never came to be and his miscalculation gravely damaged the once mighty carmaker. They’ve never recovered from his blunder. Mary has a lot riding on the politicians keeping the oil industry on its heels. Russia’s actions just might persuade them to let up.
Ci2Eye:
Your comment is spot on. Great analysis. A+
Lightning can strike the same place twice. I fear this is going to happen. Roger’s miss call on a mega thing and now with Mary being an EE, I fear her EV call is going to hugely miss the mark. Also the most likely termination of a cozy relationship with Brandon in 2024 is going to bleed out GM. Hopefully the sealed window panels in Hank the duce’s Ren Center will not be broken by jumpers in a couple of years.
We are now going into rough, dangerous, uncharted waters. Mr. Sloan is spinning in his grave.
David Alan Murray,
Thanks for that.
I’m not opposed to electric vehicles and I do think gm should be developing and marketing some EV products. What concerns me is for gm to be going all-in on electrification when EVs currently only amount to about two percent of the US market. Also, in order to make them palatable to the public, they need hefty incentives from the Federal government to somewhat ameliorate their high price. Mary Barra is apparently depending on that help from the Federal government. The current administration and current congress are inclined to provide such help but we know DC is like a pendulum always swinging from left to right. Chances are by the time Mary’s EV onslaught hits the market, the climate in Washington will have changed to a more conservative posture reluctant to hand out $12,000 payments from an already strapped treasury to electric car buyers.
Also, I don’t think gm or anybody else knows where we are going to get the energy from to power all these electric cars or how we’ll rebuild our grid to support them. It makes no sense to try and get “everybody in” to a future we haven’t first built the infrastructure for. It’s like making the icing before baking the cake. And, it isn’t just power plants and main power lines that will need increased capacity, I’m told every neighborhood will need to be reconducted to meet the load requirements of multiple EVs charging at each home. Right now one Tesla at every 20th house is no problem. It’s off-peak load and the system can handle it but if every house in the neighborhood is changing Mom’s Tesla, a Silverado EV for Dad, and an Audi eTron g for their son, that’s a different situation altogether. Neighborhood electrical distribution systems are not currently designed for that.
Add to that the recent developments in Ukraine and a sudden international desire to restrict the purchase of Russian oil and the mindset shift seemingly taking place in Washington DC and the fantasyland landscape gm has built their future around may be shifting beneath their feet. Our government has been trying to shut down our oil and gas industry since Joe Biden was inaugurated but now the pressure to reverse course on that is going each day and it’s coming somewhat from both camps. If we reopen the American spigot bringing plentiful, cheap gasoline back and don’t fund EV rebates, who among us will still want a $100,000 electric pickup truck with all its attendant shortcomings? I know some will but an already small market could get smaller.
As others have said, Toyota, as always, is playing this well. They will have EVs if that’s where the market goes but they haven’t leap head-first into an all EV strategy if that turns out not to be where the world ends up. We’ll see what happens but I personally wouldn’t be bullish on gm stock right now. Mary rolled the dice, as Roger B. Smith did, and the same fate could become her.
This is exactly as I predicted last year. I even reaffirmed it last week that the stock would go down again. Once again I’m right as usual.
Heh doesn’t really take much to predict in supply crisis and the entire industry in the dumps. Wouldn’t pat yourself in the back
For some reason I’m going to guess you would not be able to say over a year ago what the stock price would be today now would you?
Before I answer, let me ask what wisdom and factors impacted your fortune telling?
So that’s a I didn’t think you would ask me that and I have no clue so I’m going to deflect? Here’s an easy one for you tell me exactly how much it will rise or fall by next week.
Why are you taking his comments and predictions seriously?
Probably wanting attention kinda like you with the name you are using.
Anyone want to trade roubles for toilet paper? Asking for my boss.
Get off your knees and stop begging.
Lol yea stock tanked Friday morning after news broke of the ridiculous 2022 truck pricing.
Gas pricing where I am is 5.10/galllon, if it stays high GM will need to start slashing
GM has not yet delivered my 2022 3500 HD truck order! Its been almost been a year now! They cancelled my 2021 order in June 2021. I reordered a 2022 in July 2021 and still no truck. Truck was built the 1st week in September 2021 and has been parked in Flint waiting for rail delivery. GM communications has sucked for a $ 90,000 truck purchase. It’s almost looks like GM is doing this intentionally. NO WONDER STOCK PRICES ARE DOWN! What a great business model. 50,000 trucks parked can’t be good for any GM shareholder. Smoking mirrors!
Then cancel your order and move to another automaker.
Silly gullible foolish consumer.
Some people have actually been getting below MSRP on RAM HD trucks. You’ll probably get it sooner too.
Really, does anyone give a sh*t anymore about GM and their corporate stupidity? At this point I could care less about buying a car from GM! If they go under, who cares, one less car manufacturer, so what!
gm doesn’t have any affordable economy cars (Spark but it’s discontinued). They are too busy fixing the Bolts to make any new ones. The electric Silverado tv add at the end reads final price set by dealer. The stock pays no dividends. No wonder the stock is on it’s way to 25 bucks.
Here’s the REAL crisis……If we, as a country, ever find ourself in a similiar situation in China as we are in, in Russia,…..and GM is forced to terminate all operations in China. Then most of American industry will shut down because we have become totally dependent on a Communist governed foreign country…
Practically all of this electric powered vehicle industry is imported from China…….those greedy American industrialists who said …” let’s build it over there and save 10 cents”…..
As Brandon loses points and ground for reelection in 2024, so will the GM share price lose points and ground. This “all in” electric thing is crazy. It will be hybrid folks. Watch Toyota. They are playing it superbly.
We have now entered the next mega crisis after Covid with the war in Europe. Putin’s timing and move was stellar. Brandon has egg all over his face now with his anti fossil fuel campaign. Inflation and fuel prices now are out of control. Look for further slide in GM share price in the coming weeks. Am a huge fan of GM but I’m spooked on their “all in” EV flavor of the moment thing.