General Motors (NYSE:GM) reported impressive U.S. auto sales figures for the third quarter. The automaker sold 674,336 vehicles, marking a 21% year-over-year increase. This growth was supported by rising inventory levels and robust demand for commercial fleets, resulting in a 1% increase in GM’s market share.
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The company’s performance benefitted from a 16% growth in retail sales and a 28% jump in sales of electric vehicles. For the three months ended September 2023, GM reported 442,586 vehicles in inventory and cited it as the best quarter-ending in the last three years. Also, the average transaction price declined by $500 from the prior year’s quarter.
UAW Strike Impact
Based on the company’s performance, it is reasonable to assume that the United Auto Workers (UAW) union strike had little impact on the Q3 sales numbers. However, the impact is expected to be more pronounced in the fourth quarter as the strike, which was initiated on September 15, continues to drag on and expand to other production sites.
Recently, General Motors and Ford (F) were said to be laying off about 500 additional workers as the strike continues to impact their operations. Additionally, GM has secured a $6 billion credit line from JPMorgan (JPM) and other lenders in response to the uncertainties caused by the strike.
Is GM Stock Expected to Rise?
Wall Street analysts currently project an impressive 58.3% jump in GM stock to reach the average price target of $49.13 in 12 months’ time. General Motors stock has a Moderate Buy consensus rating based on eight Buys, five Holds, and two Sells. Year-to-date, shares of the company are down 7.5%.
