[Perian]

Bloomberg News
January 14, 2021

Shares hit a record high, rising 24% in the new year
Analysts say investors may have underestimated GM’s potential

General Motors Co. shares are on their longest winning streak since November, rising a fourth day, as the Chevrolet owner’s latest push into electric vehicles encouraged investors and Wall Street analysts alike.

The auto giant’s stock price touched an all-time intraday high at $51.57 on Thursday after closing at record highs on each of the past two trading days -- notching a 24% gain in the new year. In comparison, the shares rose only 14% in all of 2020, as car sales suffered globally after drivers stayed locked-down in their homes and drastically reduced travel and commutes to work.

As vehicle sales languished, GM missed out on the rally in electric-vehicle stocks that catapulted some upstarts into multibillion dollar companies. Chinese EV-maker Nio Inc., for example, often called the biggest rival of industry frontrunner Tesla Inc. in that country, now commands a market capitalization greater than GM.

Analysts now say that investors may have underestimated GM’s potential, including its joint ventures, battery technology and possible cost savings from a restructuring in North America.

“We believe that investors have undervalued the company’s strength in traditional internal combustion vehicles, as well as its Chinese joint venture, Ultium battery, and financial services businesses,” Argus Research analyst William Selesky said while upgrading GM to buy from hold on Thursday.

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[Perian]

Analysts say investors may have underestimated GM’s potential

Investors, or the entire world?

Mary Barra is the best thing to happen to General Motors in decades.









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[wallus13]

Read any non fan site article about GM and you will see they have a long ways to go with customers. There are too many people that wouldn't consider a GM vehicle, no matter how good it is currently. Going EVs will help with that imo.

I think they are moving in the right direction.

 

[BlackGTP]

Read any non fan site article about GM and you will see they have a long ways to go with customers. There are too many people that wouldn't consider a GM vehicle, no matter how good it is currently. Going EVs will help with that imo.

I think they are moving in the right direction.

I just said this in a different thread... GM seems to be able to market themselves to Wall Street better than they can to consumers which is my biggest concern of their dive into BEV. As you noted there is so much "anti-GM" (and Ford) out there from decades of mismanagement that they really need to take a moonshot to change that perception. I hope BEV is enough of a moonshot, either way it concerns me that a lot of the success relies on GM's marketing arm. MB has made a lot of positive and transformative changes to GM, but effective consumer marketing seems to still be an elusive goal.

Either way, nice artice toward GM! Though there is no way their stock will ever rival Tesla's. Though I don't think it should - no car company should have a market cap where Tesla's is unless they invent cold fusion.

 

[1958carnut]

Read any non fan site article about GM and you will see they have a long ways to go with customers. There are too many people that wouldn't consider a GM vehicle, no matter how good it is currently. Going EVs will help with that imo.

I think they are moving in the right direction.

I've noticed that as well. It's like two different worlds. But I applaud the way gm is going and Mary taking charge to turn things around.

 

[mbukukanyau]

I just said this in a different thread... GM seems to be able to market themselves to Wall Street better than they can to consumers which is my biggest concern of their dive into BEV. As you noted there is so much "anti-GM" (and Ford) out there from decades of mismanagement that they really need to take a moonshot to change that perception. I hope BEV is enough of a moonshot, either way it concerns me that a lot of the success relies on GM's marketing arm. MB has made a lot of positive and transformative changes to GM, but effective consumer marketing seems to still be an elusive goal.

Either way, nice artice toward GM! Though there is no way their stock will ever rival Tesla's. Though I don't think it should - no car company should have a market cap where Tesla's is unless they invent cold fusion.

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

Did you see how pathetic their little CES show was?

 

[1958carnut]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent

While that may be true, I still stand by what I posted above.

 

[GMOwner]

Although GM has been making great strides as of late showing themselves capable of putting themselves in the fight for relevance in the automotive industry, it is an uphill battle they have to rid themselves of various issues they've created for themselves over the decades (engineering quality, design, branding, and marketing). In addition, GM has a history of making positive moves only to take a few steps back due to outside forces they either do or don't have control over.

So, l agree this is positive news, but, my guess is that it will take some more people some more time for GM to prove it can stick to its plan despite outside forces working against them. It will only make their value go even higher over time. In the end, GM needs to exhibit corporate discipline regardless of internal corporate politics.

Tesla stock price is agreeably high. There is two main parts to its so-called over-valuation. Firstly, Tesla has somewhat the same brand loyalty that Apple used to have where there is nothing that could go wrong with them because these Tesla-maniacs will buy Tesla one way or the other. The other piece of their valuation is that they actually span multiple industries and markets and liken Tesla valuation to equal GM's + ExxonMobil + (pick your electric utility) as an example. Tesla would be smart to leverage this over valuation to actually excel in each expanded market by using these Tesla maniacs to help them expand into these other markets.

GM and Tesla are very different companies and are executing very different corporate strategies--even though they intersection in a few market areas.

 

[Ed753]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

Did you see how pathetic their little CES show was?

I did not force him to say this, he is not being held hostage, I repeat, these are his own thoughts.....................

 

[BlackGTP]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

Did you see how pathetic their little CES show was?

Hahaha - made me laugh on that one!

 

[Ed753]

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GM is in a very precarious situation, "Governmental/Environmental Changes" of which is driver in this current "EV Crazy" on one hand is helping GM and the wad they have blown on EV's.

On the other hand, it also has the potential for "The Empowered Mob" to throw buckets of paint on any vehicle that burns gas, specifically the larger ones that can barely go 20 miles on a gallon of gas.
(that would be most of those things GM makes its millions on............)

I guess it is better to have a hedge, than not, but will be interesting to see this all play out.

 

[criticalmass]

Read any non fan site article about GM and you will see they have a long ways to go with customers. There are too many people that wouldn't consider a GM vehicle, no matter how good it is currently. Going EVs will help with that imo.

I think they are moving in the right direction.

A boatload of American buyers who still go back to "Government Motors" ...a tag they probably will never shake no matter how good the marketing. A shame, but it is what it is.

 

[wallus13]

A boatload of American buyers who still go back to "Government Motors" ...a tag they probably will never shake no matter how good the marketing. A shame, but it is what it is.

Thankfully I rarely see that now.

 

[TruckMan]

34% is a start. How long will it take GM's stock to shoot up 1000% like Tesla's?

 

[1958carnut]

A boatload of American buyers who still go back to "Government Motors" ...a tag they probably will never shake no matter how good the marketing. A shame, but it is what it is.

My dad was that way, but guess what, he's back in a new Chevy Colorado. I will say there are some in that bunch that are just thick headed and will never change/go back, but if the product is worthy or better than the competition they deserve the look and the sale.

 

[91fairladyZ]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

Did you see how pathetic their little CES show was?

It's like a high school student put it together. And that may be an insult to high school students...

 

[gkr778]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

+1
GM's engineering and technology development capabilities are among the most robust of any business in any industry. As of 2018, GM had more active patent families than any other automaker except Toyota, and ranked among the top 20 businesses in the world in that regard with almost 15,000.

That makes the incompetence GM's marketing and PR dweebs even more painful to watch.

 

[gkr778]

34% is a start. How long will it take GM's stock to shoot up 1000% like Tesla's?

As soon as GM executives figure out how to run a pyramid scheme...

 

[sdotjeezy]

+1
GM's engineering and technology development capabilities are among the most robust of any business in any industry. As of 2018, GM had more active patent families than any other automaker except Toyota, and ranked among the top 20 businesses in the world in that regard with almost 15,000.

That makes the incompetence GM's marketing and PR dweebs even more painful to watch.

uhh...I think y'all mean that the other way around. I ain't sucking nobody's ---- for a GM car. I mean, if that's what he like, then that's what he like, but me...nah fam, I'm good.

 

[AutoCrazy]

I would say GM cannot market themselves to anyone even if the were getting a BJ from the target audience. They have the worst possible PR/Marketing organization. And it’s a shame for they have real engineering talent.

Did you see how pathetic their little CES show was?

Wall Street is buying up everything at insane prices these days so selling to them is like selling ice cream at a kiddie carnival.

Agreed though, GM's marketing (or lack thereof) is an enigma. Yes, they have world-class engineers and management seems to be improving.

The EV pivot is critical. GM is betting the farm on us going big-time EV very soon.