Sometimes, it’s not immediately clear just what investors want to see out of their stock of choice. For instance, General Motors (NYSE:GM) just revealed that it’s had its best year since 2019. But that wasn’t enough to keep investors from selling off and sending shares down nearly 2% in Wednesday afternoon’s trading. The numbers delivered a profound surprise, and in about the best way possible. Sales were up 14.1% as GM sold 2.6 million vehicles throughout 2023. Around a quarter of that number—625,176 cars and trucks total—were sold during the fourth quarter.
That’s a feat by any reckoning, especially given the sheer number of headwinds your typical car buyer was facing at that time. Yet, as it turned out, these numbers were only in line with expectations. Indeed, Edmunds was looking for total industry sales of 15.5 million vehicles in 2023, a 14% increase over 2022.
Beating the Bushes for More Sales
GM isn’t resting on its laurels, either. It’s already out looking for new sales everywhere they can be found. In fact, it’s already launched a new program that offers a $7,500 discount on its electric vehicles that aren’t eligible for tax credits. While this is largely temporary and limited to the new Chevy Blazer and Cadillac Lyriq, the move will still cover the gap and keep potential buyers interested in picking up a new electric vehicle from GM.
Is GM a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 14 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 3.06% increase in its share price over the past year, the average GM price target of $45.91 per share implies 29.23% upside potential.
