The idea that your car may be snooping on you and your driving habits—and reporting them to insurance agencies, among other things—is disconcerting to plenty of drivers out there. But that may not be much of a problem for General Motors (NYSE:GM), which announced it was no longer sharing data on drivers to third-party aggregation operations. Investors rejoiced and sent share prices up over 1.5% in Monday afternoon’s trading.
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Previously, GM offered data to several third-party aggregators, including LexisNexis, which used that data specifically for insurance companies to establish premium and deductible rates. GM had an excellent platform to do just that in its OnStar Smart Driver system, which, combined with eight million online-capable vehicles, could readily offer up a means to not only collect but also disseminate that information.
But then, the move was uncovered by the press—specifically, a New York Times report spilled the tea on that one—and a series of angry drivers followed by threatening lawsuits. Indeed, one man in Florida claimed insurance rates spiked on his Cadillac and blamed not only GM but also OnStar and LexisNexis for their part in the effort.
Economic Slowdown in China
That’s not the only issue facing GM these days, and recent reports detailed how it’s looking to react to some of these. For instance, recent word detailed GM’s response to an economic slowdown in China, which is still a major market by any reckoning. GM had a lot of luck in that market, too, but things are on the decline. But with domestic brands gaining ground, GM will have to find ways to get those Chinese buyers buying American once more. Meanwhile, an upcoming brand refresh is also in the cards, with a line of new products that may help invigorate the sluggish U.S. consumer.
What Is the Prediction for GM Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 13 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 29.36% rally in its share price over the past year, the average GM price target of $49.95 per share implies 14.35% upside potential.
