Is General Motors Stock Still A Buy After Reaching An All-Time High?

NYSE: GM | General Motors Company  News, Ratings, and Charts

General Motors’ (GM) retail sales hit pre-pandemic levels during the fourth quarter, driven by robust customer demand for its new vehicles, especially full-size pickup trucks and SUVs. The stock appears to have plenty of upside despite hitting all-time highs following the company’s announcement of ambitious EV expansion plans. Let’s look closer.

Founded in 1897, General Motors Company (GM - Get Rating) is one of the most established companies in the automotive industry. The company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. GM operates primarily through GM North America, GM International, Cruise, and GM Financial. Consistent  with its commitment to a sustainable future, the company is working with EVgo to build more than 2,700 fast-charging electric stations over the next five years, which is expected to triple the size of the United States’ largest public fast charging network.

The stock hit its all-time high of $51.87 on January 14 after Mary Barra, CEO, revealed the company’s ambitious EV goals at the Consumer Electronics Show (CES). GM even unveiled its Cadillac flying car and electric shuttle concepts at the show.

GM has gained 20% year-to-date to close Friday’s trading session at $49.97. For the third quarter ended September 30, 2020, GM grew its market share for all three of its fleet segments. Also, its sales in the United States and China recovered much faster than expected. Its sales in China increased 12% year-over-year and United States’ sales improved sequentially each month.

This year, the company expects to have a full year of production of its all-new Cadillac Escalade, GMC Yukon, Chevrolet Tahoe and Suburban. GM also announced its plans to build full-size pickups in Oshawa, Ontario beginning  in early 2022. The company’s logo redesign for the first time in decades also marks a significant change, reflecting its  new and innovative plans for the EV-driven future.

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