General Motors Stuck in Major Downtrend

General Motors Stuck in Major Downtrend

General Motors Corp. (GM) hit a 14-month low two weeks ago and turned higher but buying interest since that time has been weak, lacking the enthusiasm that characterized the automaker’s run to new highs in 2020 and 2021. Supply chain disruptions, world events, and an EV timeline that won’t translate into meaningful profits for years have all contributed to this breakdown in bullish sentiment, which has dumped the stock’s two-year return into negative numbers.

GM depends on globalization and free markets to compete around the world but rising tensions are making it harder to grow international venues. In addition, the business of electric vehicles is requiring an enormous investment of time and resources, lowering earnings-per-share estimates through 2023. Adding insult to injury, soaring inflation is forcing automakers to raise sticker prices, which may lower demand at the same time that profit margins get squeezed.