After General Motors announced sales results and its new electric vehicle strategy, its stock price soared and even broke a record high, but looking closely at the numbers, some people are confused why the stock moved at all.
GM (General Motors) took advantage of CES in the United States to announce two new electric vehicles, and ambitiously declared 30 pure electric vehicles models by 2025, perfectly echoing praise from President Biden. Crowned "leader of the American electric vehicle industry," GM’s actual results show this may not be the case.
Compared with CEO Mary Barra's speech at the CES venue, GM kept its fourth-quarter 2021 sales report low-profile, quietly placing it on its investor relations page with almost no publicity. However, this report obviously did not need publicity, as it exploded in the media and the community.
GM sold a total of 26 electric vehicles in the fourth quarter of 2021, ceding an already shaky No. 2 position in the U.S. electric-car market to Ford. Although GM is rushing to produce pure electric Hummers and has released Chevrolet Silverado electric pickup trucks and Chevy Equinox pure electric SUVs in hopes of taking back some market share from the Model Y, Mach-E and F-150 Lightning, the overall situation is not optimistic.
▲ Chevy Equinox Electric SUV
Tesla delivered more than 300,000 electric vehicles in the same period. In fact, GM's sales of fuel vehicles in the fourth quarter also fell by more than 40% and it even ceded the No.1 sales position in the US auto market to Toyota. GM has been the king of stateside car sales since 1931, and it is clear that the situation is dire.
Regardless of whether it is an SUV or a pickup truck, the specifications of the GM’s two new cars are not particularly worth mentioning. Compared with other competitors, they are neither good nor bad. The key to victory is who can make their car first.
Like other automakers, GM faces chip shortages but there is a bigger crisis to deal with. The negative image stemming from the Chevy Bolt battery fire is very difficult to reverse. According to the latest progress, Bolt owners who have replaced the battery will receive a sticker but, without this sticker on the window, they will not be able to enter public parking lots or shopping malls. Whether or not GM can completely solve such a serious battery problem with a new car model is something that is on consumers’ minds.
The first week of 2022 was also a bit disconcerting as GM announced 30 EV models in 3 years. Judging from their current progress, GM has to produce at least 25 new electric vehicles, with an average of 8 new cars a year. Even if it only relies on PPT to make vehicles, it will not be easy for the design team.
Even if the situation seems unfavorable, GM's creditors and investors are very confident. After the release of fourth quarter sales results, GM's stock price rose as high as US$65. Obviously, the US market does not doubt GM's resilience. After all, in 2009, the US government had demonstrated the determination to never let GM go bankrupt.
GM also stated that in the fourth quarter of 2021, dealers' inventory increased from 120,000 to 190,000 units. In other words, the chip supply problem will gradually be resolved and there will be no shortage of cars to sell, so the company is optimistic that sales will rebound in the next quarter.
(Image: GM)
