GM Stock: General Motors Earnings On Deck As Ford Plots An Electric Strike

General Motors (GM) prepares to report for the first quarter late Tuesday, and Ford Motor (F) is set to launch the critically important F-150 Lightning electric truck. GM stock lagged Ford stock Monday.

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GM’s Silverado EV will debut in 2023, trailing Ford’s Lightning EV, which will begin deliveries Tuesday. Both are the first, pure electric versions of hugely popular and profitable pickup trucks. The Rivian R1T and GM’s EV Hummer have begun limited deliveries since their late 2021 debuts.

Amid an industrywide EV shift, the auto giants are challenging each other as well as Tesla (TSLA). The Tesla Cybertruck will begin production in 2023, according to CEO Elon Musk, but that’s been pushed back several times.

Ford’s livestreaming the highly anticipated Lightning EV launch. It has touted its first-mover advantage.

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General Motors Earnings

Estimates: Analysts on average expect GM earnings to tumble 26% to $1.66 per share despite revenue rebounding 14% to $36.866 billion, according to FactSet.

GM has already disclosed that its new vehicle sales in the U.S. slumped 20% in Q1. Overall U.S. sales fell 16% last quarter, held back by chip and other supply-chain woes rather than weak demand. Offsetting weak sales, average transaction prices for vehicles have been on the rise.

Results: Check back late Tuesday.

Outlook: Analysts forecast GM earnings of $6.72 per share in all of 2022, just below the midpoint of company guidance and falling 5% year over year.

GM’s guidance on chips and production will closely watched.

Investors will also be looking for new updates on the Cadillac Lyriq, an all-electric SUV using GM’s new Ultium battery. GM will open up order books on May 19 for reservation holders, with deliveries starting soon after.

GM Stock

Shares of General Motors fell 2 cents to 39.82 in Monday’s stock market trading, below a downward trending 50-day moving average. The relative strength line for GM stock shows serious lag while its 50-day average has fallen below the 200-day line, a technical negative.

GM stock broke out in early January after General Motors unveiled an electric version of its top-selling Chevy Silverado truck. That breakout quickly fizzled and there’s no new buy point so far.

Ford, which reports late Wednesday, gained 0.4% Monday. Tesla stock slipped 0.7% to 998.02, continuing to trade around the 1,000 level.

Russia-Ukraine War May Threaten EV Shift

Both GM and Ford are spending several billions of dollars to shift away from gas and diesel cars and toward electric vehicles, or EVs. At the same time, the Russia-Ukraine war is squeezing supplies of parts and metals like wiring harnesses and nickel — the latter a key material for lithium-ion EV batteries.

By 2025, GM expects to roll out 30 all-new EVs globally. While automakers are ramping up EV and battery plans, a shortage of lithium and rare earths poses a serious risk.

The Russia-Ukraine war and a Covid resurgence in China could change the near-term calculus broadly for automakers. In April, General Motors and Ford both shut down production at Michigan plants again due to supply disruptions. Ford tied the move to the pandemic-fueled chip shortage.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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