DETROIT – Shares of General Motors on Monday closed below the post-bankrupt automaker’s $33 initial public offering price 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’s stock closed at $32.28 a share, down by 7.8%. Shares of GM have declined about 45% this year, as fears of a recession grow and investors question whether 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 vehicle inventories due supply chain problems, including a shortage of semiconductor chips.
The situation caused new car prices to skyrocket with minimal incentives from the companies, leading to record profits despite lower sales.
GM’s stock closing below the $33 a share IPO price from November 2010 occurred hours after the company’s annual shareholder meeting.
In response to a shareholder question about reinstating GM’s dividend, CEO Mary Barra said the company’s “clear priority” is to “accelerate our EV plans.” GM is in the midst of investing $35 billion in EVs and autonomous vehicles by 2025, with plans to exclusively offer EVs by 2035.