GM Inside News Forum banner

New Hummer Gives GM Stock A Little "Tesla" Magic

3K views 26 replies 13 participants last post by  CaptainDan 
#1 ·
CNBC
October 22, 2020

Shares of General Motors closed Thursday at their highest price so far this year following the successful debut Tuesday of the new GMC Hummer EV as well as the automaker’s announcement earlier in the week of more than $2 billion in new U.S. investments to support electric vehicles.

The stock settled at $37.41 a share, rising 4.6% for the day and pushing the price up 2.2% year to date. That was just enough to drive the shares into the black for the first time since Jan. 2. The stock has jumped by 11.8% this week through Thursday. If it continues at that pace, this week will be one of the top five weeks of the year for the stock, according to FactSet data. The stock’s 52-week high was $38.96 on Nov. 12.

Deutsche Bank, Barclays and J.P. Morgan upgraded their price targets on the automaker this week. Several Wall Street analysts also complimented GM during an investor presentation Wednesday about the Hummer EV, which debuted Tuesday night, but no major research firms have upgraded their ratings yet.

“Crab walk – I think some investors are crab-walking back to a stock that they had written off here. So, well-done to you guys,” Morgan Stanley analyst Adam Jonas told GM President Mark Reuss, referring to a “crab walk” capability of the Hummer EV to move in a diagonal direction.

Prior to the Hummer’s unveiling Tuesday night, BofA Securities’ John Murphy said GM’s “solid business plan” was not being reflected in its stock price.

“GM has been a hotly debated stock for years, but we believe the fundamental Core to Future transition underway at the company remains underappreciated by most investors,” Murphy wrote in an investor note.








.
 
#5 ·
If they can deliver on what has been shown
That's going to be the key. GM doesn't actually have a physical prototype of Hummer EV ready as of now. It's still undergoing build. The Hummer EV models shown in the press event videos earlier this week were digitally rendered display vehicles. Green Car Reports quoted GM engineer Al Oppenheiser:

Big Al said:
"Interestingly enough, we don’t have a vehicle yet. We’re building our first test vehicle as we speak; the vehicle you see in the video is our display vehicle.
For GM to release Hummer EV Edition 1 in Fall 2021, they must transition from the development phase to Job 1 production in 12 months. That's a remarkably short timeline - perhaps the shortest ever in GM's history or even in the history of the automotive industry.
 
#15 ·
The truth is, GM is either leading or on the verge of being the technology leader in automotive.
+1
GM has been a technology leader ever since Charles Kettering started providing consulting services to the General Motors organization established by Billy Durant over a century ago.

Technological leadership alone isn't sufficient for success in the automotive industry, however. General Motors itself has demonstrated that many times in its history.
 
#17 ·
Why are we looking at 52 week highs for? That doesn't tell us much about the impact of the Hummer. The Hummer was shown to the public on 10/21 (I believe) and the stock was under $36. Late last week it went as high as $38 and settled in at around $37.10 on Friday. The market is tanking today so it obscures any win from the Hummer. Looking at Ford, their stock was at ~$7.80 and went as high as $8.34 but settling around $8.17ish. (I'm looking at a chart and don't have exact $$). Interestingly enough Ford's stock did slightly better as a % gain. Though it isn't unusual for similar stocks to ride the coat tails.

But seeing that GM's stock is just about to the same price it was a year ago while Ford looks to be down roughly $2 (or 20%) leads me to the conclusion that Wall Street thinks GM is doing something better.

Again, I'm looking at charts and not exact dollars.
 
#18 ·
From the story:

The stock settled at $37.41 a share, rising 4.6% for the day and pushing the price up 2.2% year to date. That was just enough to drive the shares into the black for the first time since Jan. 2. The stock has jumped by 11.8% this week through Thursday. If it continues at that pace, this week will be one of the top five weeks of the year for the stock, according to FactSet data. The stock’s 52-week high was $38.96 on Nov. 12 (2019)
Perian was looking at return, from the exact bottom.

Wednesday March 18, 2020 - GM Stock: $ 14.32 per share.

Thursday, October 22, 2020 - GM Stock: $ 37.41 per share.

161.25% gain...not to shabby! (CORRECTED)

CORRECTION: The above figure should be 161.25%. Thanks to Ed753 for the update!



.

Fact is GM and Ford have ebbed and flowed independently, but in-general tracked each-other fairly close.

On a per-share basis, GM has fared a bit better, but Ford reinstated its dividend 2 years sooner than GM and has also had several special dividends mixed in there.

Sum-total is over $4.00 - On a $8.00 stock that is significant..........
 
#25 · (Edited)
GM has a far more concrete Electrification vision than its competition which has made me really fascinated by GM, and I'm not even an EV enthusiast (having never driven one before). Their goal is still far more longterm that it would first appear however, we're talking 2nd half of the decade before all of these products and investments are at the scale and cost to really matter. A few low-volume flagships here and there are only so impactful at this point. It certainly seems to set them up for earlier success, but that's not necessarily guaranteed if the competition swoops in with better EVs in key segments and prices sooner. Personally I don't think GM has any appealing EVs yet, they are either underacheiving (Bolt), ugly (Lyriq) or absurd (Hummer). We still have a long way to go before EVs start helping GM reduce the costs of a volume product.
 
#27 · (Edited)
...... I'm not even an EV enthusiast (having never driven one before).....
Test drive a Volt or a Bolt. They're not Corvettes, but for economy cars, only making about 150 horsepower, those things can MOVE.

I'm not in the market for an "economy car" EV, but feeling what an economy EV can do, gives me great hope for what an EV drivetrain can do in a vehicle that I actually DO want.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top