Thursday, May 23, 2024
NewsThe GMC Hummer EV Helped GM Reach Record High Stock Prices

The GMC Hummer EV Helped GM Reach Record High Stock Prices

GM is gaining value while Rivian and Lucid lost some

  • General Motors now has a market cap of $94 billion

  • This is the highest stock price since the 2009 bankruptcy

  • Rivian and Lucid both lost value today after massive gains last week

The automotive market is in the midst of a transformation, with the arrival of many new automakers and electric vehicles, and this leads to a very volatile stock market.

Last week, EV start ups Rivian and Lucid saw massive increases in their stock prices, enough to make Rivian the third most valuable car company in the world, in front of Volkswagen.

This week, it’s General Motors’ time to shine. With the arrival of the new GMC Hummer EV and the promise to introduce many new electric vehicles by 2025, the company saw a 3% increase in its stock prices, which brings it closer to the $100 billion mark.

As it stands now, the $94 billion market cap is the highest it has been since the company filed for bankruptcy in 2009.

The first factory dedicated to production of electric cars for General Motors, Factory Zero on the outskirts of Detroit, opened today, so this might be responsible for the increase.

Last week, Rivian and Lucid Motors handily surpassed GM in terms of valuation, but this bubble was brief, since both companies saw their share prices drop and Lucid is now valued at $87 billion, below General Motors.

Rivian suffered a drop of 18% which took billions away from its value, but its market cap is still comfortably above GM, at $128 billion.

The situation is still very volatile and the values of both legacy and start up automakers are bound to raise and drop frequently for the years to come due to the growing importance of electric vehicles.

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