Daniel Ives, MD and Senior Research Analyst from Wedbush Securities, was having none of General Motors’ (NYSE: GM) excuses for underperforming in its second-quarter earnings. The automaker posted mixed Q2 results, pulling the stock down over 4% yesterday.
“It’s time to walk the walk and not just talk the talk for GM,” Ives tweeted as he warned GM “to course correct its product/supply chain strategy otherwise it could derail the EV strategy in 23/24.”
According to GM, supply chain issues and semiconductor shortages continue to hurt automakers worldwide. The company’s net income fell 40%, which shook shareholders and analysts’ confidence. The company has noted that it is already taking steps, including a slowdown in hiring and cutting down on other expenses, to balance out the pressure from inflation.
These promises have upset the analyst so much that he insists now’s the time to act, or else GM might not be able to meet its electric vehicle (EV) manufacturing targets of 2022–2023.
Twitterati replied with similar discontent on GM’s performance. A few even stated that the global automaker was destined to fail and go bankrupt, especially with loads of government loans on its back. Some have lost confidence in GM’s ability to turn into an EV giant.
Many compared GM’s performance to that of EV superpower Tesla (TSLA) and its capability to outperform despite the chip shortage. A few respondents even frowned upon GM CEO Mary Barra’s constant claims to outdo Tesla in the years to come.
On TipRanks, GM stock has a Moderate Buy consensus rating based on 11 Buys, two Holds, and one Sell. The average General Motors price target of $53.43 implies 60.3% upside potential to current levels. Meanwhile, the stock has lost 45.5% so far this year.