GM’s stock closes below IPO price for first time since October 2020

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Mary Barra, Chair and CEO of the General Motors Company (GM), 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 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.

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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.

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