General Motors stock rises as buybacks help it outperform rival automakers
Updated
Updated · Barron's · May 1
General Motors stock rises as buybacks help it outperform rival automakers
11 articles · Updated · Barron's · May 1
On Friday, GM was the only major carmaker's stock to gain, while Rivian fell 7.4%, Stellantis 5.5%, Tesla 3.6% and Ford 1.3%.
GM spent $800 million buying back 11 million shares in the first quarter, and has spent more than $27 billion on repurchases since late 2021.
The company says buybacks are an efficient use of excess cash flow in a stable demand environment, even as Donald Trump threatened to raise tariffs on European car imports to 25%.
Is GM’s massive stock buyback a masterstroke or a sign it lacks better investment ideas in the EV race?
After billions in losses and write-downs, are legacy automakers retreating from the all-electric future they once promised?
With rising tariffs and Chinese competition, will American car buyers face higher prices and fewer choices for years to come?