Car sales, for the last few years, have been a difficult thing to predict. With shortages on one side and skyrocketing interest rates on the other, trying to outsell any quarter can be a challenge. However, it was a challenge that General Motors (NYSE:GM) was up to, announcing a hefty upswing in second-quarter sales. That was enough for investors, who added a bit to GM’s share price in response.
GM reported that its second-quarter sales were up 19%, with GM turning in 691,978 cars sold in the quarter. Of those, 15,652 were electric vehicles. Meanwhile, for the first half, GM posted 1,295,186 cars sold, which itself was up 18% against the first half of 2022. It didn’t have to pull out much in the way of gimmickry to do it, either; incentives were flat, as was total inventory. Consumers were even willing to pay more, as the average transaction size was up $1,482 against the previous quarter.
Those numbers are sufficient for some analysts to believe that GM will once again beat its quarterly earnings projections. It’s already managed to do so in the last two reports. In fact, in the last two quarters, GM has beaten estimates, on average, by 30.47%. While interest rates have only risen in the interim, it seems to have little effect on overall car buying patterns.
Turning to Wall Street, General Motors stock is currently classified as a Moderate Buy, thanks to six Buy ratings and five Holds. With an average price target of $46.90, however, it also offers shareholders 18.67% upside potential.