24/7 Insights
- General Motors Co. (NYSE: GM) stock has risen more than shares of its automotive rivals.
- GM has benefited from sluggish sales of electric vehicles across the industry.
Who would have guessed that America’s dominant seller of gasoline-powered cars would have the best stock performance against the country’s Big Three (which has to include Toyota now, because in some months its sales best Ford’s)? General Motors Co. (NYSE: GM) stock is up 30% this year, while the S&P 500 is 16% higher. Toyota Motor Corp. (NYSE: TM) is up by 12%, and Ford Motor Co. (NYSE: F) has risen only 6%.
Among the reasons for GM’s success is that electric vehicles (EVs) only accounted for 7% of cars sold last year. While EV sales have surged in recent years, that improvement has slowed considerably. Though GM has moved into the EV market, the success of its gasoline-powered cars has driven its sales.
GM noted its EV prowess when it released first-half sales numbers, but it said it had its best quarter in total unit sales since the fourth quarter of 2020. A close look shows that gasoline-powered pickups, the most popular vehicle segment in the United States, helped drive GM’s success. Sales of the Silverado LD hit 100,160, up 7.7%. That was against total GM sales of 696,086 for the first quarter 2024.
No matter how much auto experts say that EVs are the wave of the industry’s future, sales have slowed because people worry about EV prices, the number of charging stations, and the range of cars. The near-term future of the industry is still gasoline-powered engines, and GM continues to dominate that part of the market.
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