Analysts say eroding pricing power, labor concerns and challenges in producing EVs will make it harder for GM to perform at the same profitability levels.
General Motors shares are down nearly 6% this week since the company reported its first-quarter results Tuesday morning, despite an earnings beat and guidance raise.
That helps explain why shares of GM were down nearly 6% from GM's first-quarter report through Wednesday, trading just above $32 per share. Wednesday notched the stock's lowest closing price since October, with shares 26% off their 52-week high of $43.63 a share. The stock is down 2.75% for the year after closing Thursday at $32.72.
Higher prices are bad news for consumers but great for automakers, as noted by BofA Securities analyst John Murphy in an investor note Wednesday titled "You hate it, we like it: execution and price drive beat and raise."GM's stock price since Mary Barra became CEO of the automaker on Jan. 15, 2014. GM has shown restraint in not overproducing this year, helping to keep inventories in line with demand and prop up prices. The company idled pickup truck production at a plant in Indiana around the end of the quarter to keep inventories lower than historical levels.Union threats
"We're here to come together to ready ourselves for the war against the one and only true enemy: multibillion-dollar corporations and employers who refuse to give our members their fair share," new UAW President Shawn Fain told members during a union convention last month in Detroit. "It's a new day in the UAW."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
2023 Broad Street Run: What you need to know about the event course, street closuresOrganizers expect 40,000 runners, both in-person and virtually, to participate in the 10-mile run on Sunday morning.
Read more »
Wall Street analysts say Amazon is still a buy, but investors should ‘stay patient’ on AWSThey said traders should look toward margin upside for Amazon, as well as the long-term opportunity in cloud services.
Read more »
The Best Sesame Street Toys of 2023Whether you’re looking for an Elmo rattle or Oscar the Grouch stacking cups, shop our picks for the best Sesame Street toys for babies and toddlers.
Read more »
Harley-Davidson profit rolls past Wall Street estimates as revenue climbs 20%Harley-Davidson Inc. stock is rolling higher by 3% in premarket trades after the motorcycle maker’s first-quarter revenue and profit blew past analyst...
Read more »
WSJ News Exclusive | Wall Street’s New Trade: Covid-19 Insurance ClaimsA number of prominent hedge funds have been buying portions of companies’ claims against their insurers for losses suffered in Las Vegas and elsewhere during the pandemic
Read more »