First time since October 2020, General Motors stock closes below its IPO price

• General Motors shares fell below the automaker’s post-bankruptcy IPO price of $33 on Monday for the first time since October 2020.
• GM’s stock closed Monday at $32.28 per share, a 7.8 percent decrease. GM’s stock has dropped over 45 percent this year.

DETROIT: General Motors shares fell below the automaker’s post-bankruptcy IPO price of $33 for the first time since October 2020 on Monday.

GM’s shares finished at $32.28 per share, down 7.8 percent, amid a widespread market sell-off that also sent Ford Motor and Chrysler-parent Stellantis to new 52-week lows. GM stock has dropped nearly 45 percent this year as investors worry about a recession and whether the automaker’s most prosperous days are behind it.

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During the coronavirus epidemic, GM and other automakers reported record profits as resilient consumer demand surpassed new vehicle inventories due to supply chain issues, including a shortage of semiconductor chips.

Because of the circumstances, new automobile costs skyrocketed with little motivation from the corporations, resulting in record profits despite reduced sales.

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GM’s shares fell below its IPO price of $33 per share in November 2010, only hours after the company’s annual shareholder meeting.

In answer to a shareholder inquiry about the reintroduction of GM’s dividend, CEO Mary Barra stated that the company’s “clear priority” is to “accelerate our EV plans.” GM is investing $35 billion in EVs and driverless vehicles by 2025, with plans to provide only EVs by 2035.