General Motors (GM) Stock Fell Slightly After Cancelling Two Shifts. Is It Still Relevant?

The General Motors Company (NYSE: GM) stock price fell slightly during premarket trading after being forced to cancel two Thursday shifts at its Lansing Plant in Michigan due to the trucker protests at the US-Canada border.

The truck drivers are protesting against vaccination mandates imposed by the Canadian government requiring them to be fully vaccinated to cross into Canada.

The car manufacturer noted that the shift cancellations were due to parts shortage due to the truck pileup at the border as traffic into the US from Canada was at a standstill.

Also Read: The Best Electric Car Stocks to Buy.

The Canadian government is working to quell the protests that have wreaked havoc across the country and even imposed a state of emergency in the national capital of Ottawa in a bid to stop the protests that have gotten out of hand.

General Motors stock has fallen heavily since early January, as seen on the daily chart below, but the overall losses are not as significant as the chart would indicate.

Many predict that the rise of EV manufacturers such as Tesla, Rivian, and Li Auto would help extinction legacy car manufacturers such as GM and Ford. Still, these companies have upped the ante in the EV sector.

Ford has released an electric version of its popular F150 truck known as the F150 Lightning truck, which competes with trucks from EV manufacturers such as Rivian.

On the other hand, General Motors is upgrading its manufacturing facilities in Orion, Michigan, to start producing electric versions of its popular GMC Sierra and Chevy Silverado pickups.

GM’s trucks already have an established fanbase and remain top sellers despite the mounting competition from EV trucks, as many people still prefer their internal combustion engine pickups.

The electric versions of these popular pickup trucks will appeal to those fans who are keen on their environmental impact but still prefer to drive GM’s trusted pickups instead of those produced by the EV startups.

While GM still has a lot to do before it can catch up to companies such as Tesla and Rivian, I wouldn’t write off the company just yet. The legacy car manufacturer will continue to supply many vehicles to happy owners despite EVs’ allure and pomp.

GM shares are currently trading at a crucial support level that has been in place since August 2021 and look attractive to auto investors. However, there are no guarantees that we won’t get a further decline in future.

*This is not investment advice. Always do your due diligence before making investment decisions.

General Motors stock price.

General Motors stock has fallen 13.5% in 2022 but could have recently bottomed.