General Motor Co.’s (GM Stock) value swelled by nearly 5% last week, and they will be investing almost $1B in the DMAX plant. After consolidating in a narrow range since earnings, the share price finally broke out above EMA. Also, General Motors recently joined Ford in a collaboration with Tesla for strengthening the U.S. EV charging network.
General Motor Co. (GM Stock): Financial Inspection
On June 16, 2023, at an event at the DMAX plant in Brookville, leaders of a Detroit-based automotive company, announced investing $920 Million in the facility. The funding would help in the production of internal combustion engines for heavy-duty trucks. Also, the size of the existing plant will increase by 1.1 Million square feet, quadrupling the current size.
The partnership between the three automotive giants of the United States, General Motors, Ford Motor Co., and Tesla shall ensure that over 60% of the current EVs in the country have access to Tesla’s North American Charging Standard (NACS). This setup would make NACS the primary charging network in the U.S.
At press time, General Motors Co. (NYSE: GM) share price is trading at $37.96 with a slight drop of 0.18%. The previous close and open shares were listed at $38.03 and $38.12, respectively. The 52-week change comes with a hike of 16.30%. With an average volume of 14.27 Million shares, the market cap of the company stays strong at $52.769 Billion.
Analysts placed a 2.58 rating for moderate buy and placed the price target at $49.81 with a 31.2% upside. The trailing twelve months (TTM) price-to-earnings ratio (P/E) is 5.78, and the earnings per share (EPS) in a similar time-lapse is $6.57.
The last earnings were reported on April 25, 2023, where the revenue beat the estimates by 3.72% and was reported at $39.985 Billion. It was estimated to be $38.55 Billion, making a surprise of $1.435 Billion. The revenue (TTM) is said to be at $160.74 Billion.
Considering March 2023 data, the revenue hiked by 11.13% to $39.99 Billion, the revenue per share (TTM) is $112.45, and the quarterly revenue growth is reported to increase by 11.10%. Operating expenses swelled by 15.65% to $2.46 Billion, and operating margin (TTM) gained 7.49%.
The total cash in hand of General Motors at the end of the most recent quarter (MRQ) is $23.81 Billion, with a total debt of $116.83 Billion. The next earnings are expected on July 25, 2023, with revenue expectations of $41.059 Billion.
General Motors Co. (GM Stock): Candle Exploration
GM Share price showed a steep ascend from the demand zone, eventually breaking the EMA, making it a crucial support. The price is expected to rise and enter the supply zone, however, the RSI value of 69.68 hints at a slight drop. Even if it happens, it shall bounce off the crucial support.
Even if the NYSE: GM share price drops below EMA, it might not drop far below, as the new partnership has the potential to fuel the rally. Also, the promising financial reports recently released by the Feds are creating positive momentum throughout the market.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/18/gm-stock-will-alliance-with-ford-tesla-help-the-rally/