June 15, 2022: -Shares of General Motors closed less than the post-bankrupt automaker’s $33 initial public offering price for the first time since October 2020.
Between a broad market sell-off that caused Ford Motor and Chrysler-parent Stellantis to a recent 52-week low, GM’s stock shut at $32.28 a share, a low of 7.8%. Shares of GM own declined nearly 45% this year as fears of a recession increase, and investors ask whether the automaker’s most gaining days are behind it.
GM and different automakers have registered record profits during the coronavirus pandemic. The resilient consumer market outweighed current vehicle inventories due to store chain problems, including a shortage of semiconductor chips.
The situation caused current car prices to skyrocket with minimal company incentives, showing record returns despite lower sales.
GM’s stock closing less than the $33 a share IPO price from November 2010 occurred hours after the company’s annual shareholder meeting.
In response to a shareholder query regarding reinstating GM’s dividend, CEO Mary Barra said the organization’s “clear priority” is to “accelerate our EV plans.”
GM is investing $35 billion in EVs and independent autos by 2025, with plans to offer EVs by 2035 exclusively.