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.