In the week ended October 6, General Motors (GM) stock settled at $44.93 with 11.3% gains from the previous week’s closing price. Notably, these were the highest weekly gains for the company’s stock since its listing on the New York Stock Exchange in 2010.
September 2017 was the best month for GM stock in the last 14 months. The company rose about 10.5% on Wall Street last month. As of October 10, it was trading at $45.33 with a 33.1% rise on a year-to-date basis, which was better than the 13.7% gains seen in the S&P 500 Index (SPY).
Gearing up to take on Tesla
On October 2, GM revealed in a press release its plans to launch two new all-electric vehicles (or EVs) in the next one and a half years, which is the beginning of GM’s big plan to add a minimum of 20 EVs to its product portfolio by 2023. The company mentioned that these vehicles would be based on the feedback it has collected for its Chevrolet Bolt EV car model.
Tesla began first deliveries of Model 3 in 3Q17, which were much lower than expectations due to production bottlenecks. After GM’s recent announcement that it will expand its EVs, portfolio pressure could mount on Tesla to fix its production bottleneck issues and ensure better availability of Model 3.
Rally supported by US sales data
In September 2017, General Motors’ US sales rose for the second consecutive month by about 11.9% YoY (year-over-year). According to the August data compiled by Autodata, GM reported a handsome rise of about 21.9% YoY in its truck sales.
Strong gains in GM’s September US truck sales have raised investors’ expectations for GM’s 3Q17 results. These high expectations along with its recent announcement about its EV segment could continue to fuel its stock in the near term.
Read on to the next part where we’ll see how Ford stock traded last week.