GM Shares Fall Below IPO Price for First Time Since 2020

For the first time since October of 2020, shares of General Motors sunk to below their IPO price on Monday.

Shares closed below the post-bankrupt automaker’s $33 initial public offering price at $32.28 a share, down by 7.8%. Shares of GM have declined about 45% this year so far.

While GM and other automakers have reported record profits during the coronavirus pandemic, fears of a recession have investors spooked about GM’s future.

The stock closed below its $33 a share IPO price from November 2010 just hours after the company’s annual shareholder meeting.

In response to a shareholder question about reinstating GM’s dividend, CEO Mary Barra said the company’s “clear priority” is to “accelerate our EV plans.”

GM is in the midst of investing $35 billion in EVs and autonomous vehicles by 2025, with plans to exclusively offer EVs by 2035.

The company also recently teamed up with Lockheed Martin to develop a line of Lunar Mobility Vehicles that will provide transportation for manned missions visiting the Moon.

The collaboration aims to have the vehicles ready ahead of the first manned Moon missions of the 21st century, which are currently slated for 2025.

The vehicles are being designed with autonomous driving capability and platforms that can handle carrying humans or gear around the lunar surface.

“The things that you would do to make a vehicle good in an off-road environment on Earth are the same things you would do on the Moon, it’s just a shift in the numbers,” said Jeff Vogt, GM advanced vehicle dynamics lead engineer.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.