Ford (F) and General Motors (GM) - which, along with Stellantis (STLA), make up the once-formidable Detroit “Big 3” - have not created wealth for investors over the years, and if anything, have destroyed wealth. The underperformance of Ford and General Motors is not limited to 2023, where both stocks are in the red, despite the S&P 500 Index ($SPX) gaining double digits. Instead, it's more of a long-term phenomenon.
GM stock, for instance, still trades below its 2010 IPO price of $33. Incidentally, the “new GM” listed that year, after having gone bankrupt the previous year. Ford hasn’t performed any better; since the 1956 listing, the shares have risen at a CAGR of under 4%. Even if we add the dividends, the returns would trail what the S&P 500 Index has delivered over these years - let alone coming anywhere near the stellar returns that Tesla (TSLA) has delivered since its 2010 IPO.
