For legacy carmaker General Motors (NYSE:GM), news of a recall probably should have been more of a problem than it was. However, after announcing the recall, the share price increased by nearly 2% in Tuesday morning’s trading session.
Thankfully, the recall in question is connected to a fairly small matter: the tailgate. Around 320,000 vehicles have a particular issue with the tailgate, which may fall open while driving them around. The vehicles that have a problem with the tailgate are two models of the Chevrolet Silverado and GMC Sierra with the same model numbers: the 2500 and 3500. All four of these models have power-unlatching tailgates, so there will likely be no issue for those whose trucks are without that feature.
Meanwhile, Electric Vehicles Are Losing Their Spark
GM’s troubles with cars and trucks don’t stop there. In fact, reports note that GM is putting a new focus on old technology, getting back into the gas engine market, and focusing less on electric vehicles. GM is putting more into developing new and better gas engines, and it’s not alone. Those reports also note that Toyota is focusing on gas engine development, possibly due to the troubles seen with electric vehicles during winter driving. We already knew that GM was investing more in hybrid vehicles, so it makes sense that they’d try to improve the gas engine since hybrids use them.
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, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 5.99% loss in its share price over the past year, the average GM price target of $48.12 per share implies 24.97% upside potential.
