GM is experiencing an exceptional year on Wall Street, with its stock surging 59.43 percent year-to-date as of this writing. The impressive growth not only outpaces traditional automotive rivals like Ford and Stellantis, but also positions General Motors ahead of newer electric vehicle (EV) players such as Tesla, Rivian, and Lucid. The stock performance follows the launch of a $12.4 billion stock buyback program in November of 2023, which is expected to continue into the immediate future.
Per a report from CNBC, General Motors continues to exceed Wall Street’s earnings projections and has raised its financial outlook for 2024, all despite challenges in the U.S. market and financial headwinds in China. GM China sales plummeted 29 percent during Q2 of 2024 and a further 21 percent during Q3 of 2024.
Although the automaker is restructuring in China, General Motors has demonstrated relative operational stability without resorting to drastic restructuring efforts in the U.S., all while The General’s competitors continue to struggle. Ford, for instance, has seen its stock fall by 10 percent, while Stellantis shares have plunged 42.5 percent. EV rival Tesla has fared better, but has yet to match General Motors’ continued stock price strength, with Tesla stock prices posting gains of around 30 percent.
This upward trend for General Motors marks a shift from historical patterns where GM and Ford stock prices often moved in tandem, mostly due to the cyclical nature of the auto industry. However, General Motors’ recent financial achievements have set it apart, with analysts outlining an average price target of $59.85 per share. CEO Mary Barra is cautiously optimistic, noting that 2025 could mirror 2024’s performance and that General Motors is well-positioned to remain competitive.
Barra’s approach focuses on building resilience and growth through strategic advantages, emphasizing GM’s ability to leverage “tailwinds that are within [GM’s] control” to enhance profitability. Although General Motors’ stock has not seen extreme growth under her tenure, the company’s recent achievements point to a sustainable upward trend, rising nearly 40 percent during her tenure as CEO. General Motors reached an all-time stock price high of $67.21 in January of 2022. The current GM stock price is set at $57.35 per share, as of this writing.
Comment
$12.4 billion on stock buybacks, but they won’t have US hybrids until 2027? Yet another corporation targeting short term gains at the expense of long term operations; hoping they avoid what’s happening to Intel.