General Motors Company (GM) Chairman and CEO Mary Barra speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2022.
Patrick T Fallon | AFP | Getty Images
DETROIT – Shares of General Motors Monday closed below the post-bankrupt automaker’s IPO price of $33 for the first time since October 2020.
Amid a broad market sell-off that also pushed Ford Motor and Chrysler parent Stellantis to new 52-week lows, GM stock closed at $32.28 a share, down 7.8%. GM’s shares are down about 45% this year as fears of a recession mount and investors wonder if the automaker’s most profitable days are behind it.
GM and other automakers have reported record profits during the coronavirus pandemic as resilient consumer demand outweighed new car inventories on supply chain issues, including a shortage of semiconductor chips.
The situation sent new car prices soaring with minimal corporate incentives, resulting in record profits despite lower sales.
GM’s stock close below the November 2010 IPO price of $33 per share came hours after the company’s annual stockholders meeting.
In response to a shareholder question about GM’s reintroduction of dividends, CEO Mary Barra said the company’s “clear priority” is to “accelerate our EV plans.” GM is on track to invest $35 billion in EVs and autonomous vehicles through 2025, and plans to be EV-only by 2035.