Despite my huge respect for what GM has done in the ICE world, I would short GM right now, if I did that sort of thing. I am beginning to think Mary Barra went to the Trevor Milton school of charlatanism. Not only do the emboldened and increasingly outrageous claims not reassure me, they cause me to think Barra could be attempting to swindle shareholders. The next time Mary opens the spigot of lies, consider this... GM EV deliveries: 21Q4 = 26 22Q1 = 457 22Q2 = 7217 So, yeah, overtaking Tesla by 2023 could be a bit of a stretch goal.
I am oddly not against GM getting into the energy storage business. It doesn't make sense to me, and is most likely a misguided hot mess that will ruin their car division but I do not know this for certain, so am not flat against it. If GM had a compelling EV, they would be stripped of their cell supply by production. There is insatiable demand for certain EV vehicles. Specifically, there is infinite demand for an EV panel van (BrightDrop) and small delivery van. If GM could ramp up production on these products, they would not have sufficient cell supply, even if they killed the energy division. So, 90% chance this is a horrible corporate direction, steered by ignorance. 10% chance it is an OK move and poor consumer uptake of the EV product line will leave them with sufficient cell supply to operate an energy division. Most likely, this is probably being driven by fear they may not have their EV act together and will be drowning in cells 18 months from now. They could sell those cells to any number of competitors but they probably wouldn't want to do that.
I find myself wondering how long GM is going to hang onto Mary Barra. I'm not familiar with GM's board or how tolerant they are of incompetence.
GM to idle Indiana truck plant for two weeks as demand plateaus Feb 23 (Reuters) - General Motors said on Thursday it will halt production at its Fort Wayne Assembly truck plant in Indiana for two weeks from March 27 as inventory starts to outweigh demand with the easing of supply-chain snags. Shares of the U.S. automaker fell 3% in early trade, while rival Ford Motor Co was about 1% lower. After two years of U.S. automakers scrambling to keep pace with demand amid a parts shortage, GM's decision to cut production of its highly-profitable pickup trucks signals a shift in the status quo. "GM probably is trying to maintain pricing power with this move but it's also contradictory to what they've been saying for a while recently that demand remains very strong," Morningstar analyst David Whiston said. Analysts have warned that rising interest rates and high vehicle prices could begin to depress demand, even as inventories of new vehicles have been rising over recent weeks.
This looks like a strong suggestion of take it while you can get it....or get a layoff or booted soon. GM offers salaried employee buyouts, will take up to $1.5 billion charge (Reuters) -General Motors Co on Thursday said it was offering buyouts for most of its salaried employees and global executives and expects to take a pre-tax charge of up to $1.5 billion to cover the costs. The announcement comes as layoffs by U.S. companies in the past two months touch their highest since 2009, with the tech sector accounting for more than a third of the over 180,000 job cuts announced. The largest U.S. automaker in January disclosed a $2 billion cost cut target, including reducing employment through attrition. Under the terms of the staff reduction plan, all U.S. salaried employees with at least five years of service and all global executives with at least two years of service will be offered lump sum payments and other compensation to exit the company, GM said. "Employees are strongly encouraged to consider the program," the automaker said. "By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market." It expects to take the bulk of the charge in the first half of 2023. GM, whose share fell about 1%, had 58,000 salaried employees at the end of 2022. Eligible employees interested in the voluntary program must sign up by March 24 and those agreeing will leave GM by June 30. The buyouts are separate from job cuts the company made last month. A GM executive in February said the company was cutting hundreds of executive-level and salaried jobs. Peer Ford Motor Co said it planned to eliminate 3,800 product development and administration jobs in Europe in the next three years.
GM has offered a buy-out to more than half of it's salaried staff. Two years ago, I thought GM would be the only legacy auto company that would make the jump to EV. Now I can see they have nearly no chance of survival, even with the infinite amount of government cash that will undoubtedly be poured on that bon fire of a company. Meanwhile, Ford is doing surprisingly OK and Stellantis is showing some signs of clever management thought.
GM has changed their strategy from migrating to building BEV, they plan to bring BEV in from China. I'm not sure how this is going to work but we may start to see American content rules start to relax and a lot more imports. They are talking about both the electric Silverado and Cadillac being built in China. Meanwhile, North American brand sales are all but dead in China. Politics warning As best I can tell, 40% of the population could be talked into shooting themselves in the head with little effort. If GM wants to import the hell out of vehicles from China, I expect they have sufficient sway over both parties to make it happen and whatever party has power at the moment will pretend it's a good thing. I'm not sure how, and if, this affects Tesla. Tesla is already importing Chinese made cars into Canada and Europe. Maybe they can build their $25K car in China? Why build anything in the US? What I also find interesting is that India will not budge on their ban against Chinese made vehicles for Tesla. Tesla is going to have to bring in German made cars to India, for the purpose of test marketing. While nothing has been announced, this seems to have pushed Tesla into a tentative commitment to build a gigafactory in India. It will be interesting to see how this plays out in North America. It would indeed be strange if an obsolete company that is headed for bankruptcy could change the course of North American politics and send even more of labor force to China but this is a distinct possibility.
CNBC $GM announces it will release a business update next Wednesday... could that mean new guidance? @GuyAdami and @TimSeymour take a look at what we could see, and what's next for the stock: Tim owns GM looks cheap otherwise. https://x.com/CNBCFastMoney/status/1727095562179080441?t=MEhWSdty2Q_Fi7wLs_hdYA&s=09
Hopefully GM does this battery like Toyota. @ToyotaMotorCorp, An EV powered by a solid-state battery would have a range of 1,200 km (746 miles) and charging time of just 10 minutes, according to Toyota.
Super Bullish in a month adding more shares. General Motors stock hitting a 3-year low today, down 54% from its peak in early 2022. It has made no gains over the last 12+ years (total return, including dividends). $GM
Good news manufacturer General Motors (NYSE:GM) jumped in trading after reinstating its FY23 earnings guidance. The company had initially withdrawn its guidance after its Q3 earnings due to labor disruptions. In addition, GM announced an accelerated share repurchase (ASR) program worth $10 billion and intends to increase its dividend by 33% beginning next year. Chart looks like the start to moving up a lot till next year.
LOL GM Dealer Chat Bot Agrees To Sell 2024 Chevy Tahoe For $1 https://gmauthority.com/blog/2023/12/gm-dealer-chat-bot-agrees-to-sell-2024-chevy-tahoe-for-1/
AI is just a computer program, and all programs have bugs. So people have been looking for ways to exploit these AI/bugs for years. eg years ago when driving, you can be aggressive toward self-driving cars because self-driving cars are programmed to avoid accidents. I don't think people understand this: when humans encounter AI, they will try to take all advantages of it. AI is not human; it is less than human. Humans just naturally think they're better than anything lol. "Being smarter" ain't gonna mean shit. Eventually a human will find the loophole that the AI wasn't trained on.
If I was a more aggressive investor, I would short sell GM in the mid $30 range. It currently sits at $36.06. By my analysis, 90% chance GM is down at the end of 2024.
