Renowned auto manufacturer General Motors (GM) in Detroit, Mich., recently reported its results for the fourth quarter, ended Dec. 31, 2021. Its revenue declined 10.4% year-over-year to $33.58 billion, while its net income fell 38.8% year-over-year to $1.74 billion. GM’s shares are currently trading 20.4% below their 52-week high of $67.21, which they hit on Jan. 5, 2022. Also, the stock has declined 8.7% in price year-to-date.
GM was dethroned as the highest-selling automobile manufacturer in the United States by Toyota Motor Corporation (TM) last year, after holding the spot for 90 years. GM’s sales declined to 2.2 million vehicles, compared to 2.5 million vehicles sold in the year-ago period. GM has announced plans to go all-electric by 2035, a strategy that is aligned with the changing global automotive industry. However, Cox Automotive analyst Michelle Krebs said, “They have committed to going all electric, not doing hybrids, not doing plug in hybrids, and jumping right to electric vehicles. So, it’s a huge risk. It's bold, it's very ambitious. And the risk is, well, you know, can they do it when they do it, especially in light of range costs and infrastructure issues?”
