GM stock closes below its IPO price for the first time since October 2020

Mary Barra, President and CEO of General Motors (GM), speaks during the Milken Institute World Conference in Beverly Hills, California, on May 2, 2022.

Patrick T. Fallon | AFP | Getty Images

Detroit – Shares in general motors On Monday it closed below the $33 initial public offering price for the post-bankrupt automaker for the first time since October 2020.

middle Wide sale in the market that also paid Ford Motor Chrysler’s father Stilants To a new 52-week low, General Motors stock closed at $32.28 a share, down 7.8%. Shares of GM are down about 45% this year, as recession fears grow and investors question whether the auto industry’s most lucrative day is behind it.

General Motors and other automakers reported record profits during the coronavirus pandemic as flexible consumer demand for new auto stocks outweighed supply chain problems, including a shortage of semiconductor chips.

the situation It caused the price of new cars to rise With minimal incentives from companies, resulting in record profits despite lower sales.

GM stock’s closing below $33 per share IPO price as of November 2010 occurred hours after the company’s annual shareholder meeting.

In response to a question by shareholders about GM’s dividend redistribution, CEO Mary Barra said the company’s “clear priority” is to “accelerate our electric vehicle plans.” GM in the midst of investing $35 billion for electric and autonomous vehicles Vehicles by 2025, with plans Offers exclusively electric vehicles by 2035.

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