Bad news for General Motors (NYSE:GM) investors today as the legacy automaker revealed its first-quarter vehicle sales figures. The numbers were not great, as you’d likely expect from an economy with high interest rates and still-high inflation figures. Investors weren’t happy about it either and sent shares down modestly in Tuesday afternoon’s trading.
GM saw sales decline 1.5% against the first quarter of 2023, bringing the total to 594,233 vehicles. The biggest loss was to fleet customers, or those who buy large numbers of vehicles at a time, like rental car operations, catering firms, or anything similar. Fleet sales were down a whopping 22.9% against the first quarter of 2023.
Hope for the Electric Market?
However, there are a few signs of life to mention. GM is currently finishing up its final sell-down for the Chevrolet Bolt, with only a few thousand models left on lots. Most of these are on the West Coast and represent the best-selling electric vehicle GM has offered yet. The Bolt line will be replaced by a panoply of other models with newer propulsion systems.
GM’s also got some future development in the pipeline, with a recent patent for a battery system featuring “Lego shapes.” Said to be an aid in cooling—the modular batteries leave channels for airflow when assembled—it’s unclear when, or even if, the new batteries will see service. Still, it’s a fairly clever idea if it works.
Is GM a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 13 Buys, six Holds, and one Sells assigned in the past three months, as indicated by the graphic below. After a 25.26% rally in its share price over the past year, the average GM price target of $50.16 per share implies 11.76% upside potential.
