GM stock hit its lowest value per share in years today, bottoming out at $26.30 per share before rising to close at $26.85 per share by the end of trading Friday afternoon. The $26.30 per share price is the lowest value for GM stock since August 7th of the 2020 calendar year when GM stock was on an upward trend after bottoming out at $14.33 per share on March 18th, 2020. GM stock previously hit $28.01 per share late last month. GM stock value fell below $30 per share for the first time in three years on October 5th, 2023.
Last month’s record low for GM stock followed the release of the automaker’s Q3 earnings report amid the United Auto Workers (UAW) labor strike. The automaker’s Q3 earnings report was highlighted by $4.1 billion in global revenue, an increase of 5.4 percent, with net profit margins easing 6.9 percent. Net income was down 7.3 percent to $3.1 billion, with adjusted earnings before interest and taxes falling 17 percent to $3.6 billion.
One of the biggest factors influencing GM stock value over the last six weeks has been the UAW labor strike, which began September 15th following the expiration of the previous national labor agreement. The UAW strike affected numerous GM production facilities, including the GM Arlington plant in Texas, considered the most-profitable auto plant in the world, as well as the GM Wentzville plant in Missouri, the GM Lansing Delta Township plant in Michigan, and a long list of parts and distribution centers. The strike also resulted in downstream effects that cut production at the GM Fairfax plant in Kansas and various metalworking plants. The strike was estimated to have cost GM hundreds of millions of dollars per week.
Although GM and the UAW reached a tentative agreement late last month, the agreement has yet to be ratified by the national UAW membership. The latest voting results indicate that ratification is in a dead heat.
GM stock has also been affected by the delayed launch of several all-electric GM vehicles, including the Chevy Equinox EV, the Chevy Silverado EV RST, and the GMC Sierra EV Denali. What’s more, GM’s autonomous vehicle division, Cruise, has halted its driverless vehicle operations following the suspension of its driverless vehicle testing permit in California.
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Comments
If you think it’s bad now, wait until the EV boondoggle goes bust. The government is broke and the dollar is worthless, I doubt there’s going to be another bailout. Mary Barra might be the person who finally ends General Motors.
Bigger concern nearer term is another Great Recession. I think we’re teetering on the edge right now. Depending on your point of view, that could be good or bad. I’m in the former camp. America is desperate for a conk on its head.
It will be a miracle if GM doesn’t go under $10 before July. The market is definitely cooling and EV’s are COLD. Even Tesla has new cars on Cars.com.
Good thing 97% of the vehicles GM sold in the US in Q3 2023 were ICE vehicles.
mary msrp barra says raise msrp more! that will fix it
i drove by the local dealer alley tonight… various dealers from gmc/chevy toyota ford kia… vw. basically all major brands have a dealership there. lots are packed and auto transports were still coming in unloading truckloads of inventory at 8pm on a friday.
mary msrp barra needs to get ahead of the curve and start doing the old 17k in incentives on silverados now, not later. dealers need to return to the old we will negotiate now, not later. seems everybody is still in denial what is taking place
but in lalala land, mary msrp barra is like “raise msrp, create “constraints”, delay refresh cycle, no incentives”.
All of my stocks have been in the red since Biden took office! This guy and his administration are destroying this country!!! Inflation out of control, Illegal border crossing out of control, Crime out of control, wars breaking out, migrant crises out of control!!!
Yep. Almost everything Biden does has caused my 401K to drop lower. Perhaps he and his inflationary policies will be gone after 2024.
Why is Mary Barra still at GM?
She should be working at some McDonalds drive thru screwing up peoples orders.
Ok, so she made one little mistake …….
Politicians with no knowledge of either the product or the public decide to tell the peasants what they really want. Golly, what could go wrong?