GM Posts Best Quarterly Sales in Three Years

What You Need To Know

General Motors (NYSE: GM) announced its strongest quarterly sales in over three years, with impressive increases in both full-size pickup trucks and electric vehicles. In the second quarter, GM recorded sales of 696,086 units, marking a 0.6% increase from the previous year and the highest quarterly sales volume since Q4 2020.

The company's electric vehicle deliveries surged by 40% year-over-year to 21,930 units, though they represented only 3.2% of total second-quarter sales. Notably, GM saw a 6% growth in sales of its full-size pickups, reaching around 229,000 units – the best quarterly performance since 2021. Despite a 0.4% decline in total sales for the first half of the year compared to last year, GM's second-quarter performance is anticipated to slightly outpace the industry average.

Cyberattacks on CDK Global, a leading dealer software provider, have created uncertainties for the industry, impacting the operational efficiency of many dealerships.

Why This Is Important for Retail Investors

1. Understanding GM's positive quarterly sales performance can indicate the company's overall financial health and potential for future growth, which is crucial for retail investors looking to make informed investment decisions.

2. Awareness of the rising demand for electric vehicles within GM's sales figures can provide insight into the company's positioning in the evolving automotive market, helping investors assess its competitiveness and adaptability.

3. Knowledge of GM's resilience in the face of industry challenges, such as cyberattacks affecting dealer operations, can give investors a better understanding of the risks associated with investing in the auto sector.

4. Tracking Toyota and Hyundai's strong sales performance allows investors to compare and evaluate investment opportunities across different automakers, diversifying their portfolios and potentially maximizing returns.

5. Monitoring Kia's sales trends, including both gains and losses, offers valuable market intelligence for investors seeking to gauge the brand's performance and potential investment outcomes in the competitive automotive landscape.

How Can You Use This Information?

Here are some of the investing ideas that can be explored using this information:

Value Investing

Analyzing GM's strong sales performance and potential growth prospects to identify undervalued investment opportunities within the company.

Value investing searches for undervalued companies that trade for less than their intrinsic values, with the expectation that they will eventually be recognized by the market.

Growth Investing

Assessing GM's success in EV sales and overall market share growth to capitalize on potential high-growth stocks within the automotive sector.

Growth investing focuses on stocks of companies expected to grow at an above-average rate compared to other stocks in the market; learn more in our article titled 'What is Growth Investing?'.

Defensive investing

Considering GM's consistent sales performance amidst industry challenges, seeking stable and resilient investment options that can weather market uncertainties.

Defensive Investing focuses on securing a portfolio by choosing companies that are less sensitive to economic downturns.

Income Investing

Evaluating dividend potential from stable performers like GM and Toyota based on their consistent sales and financial results.

Income investing targets steady earnings, typically through dividends from stocks or interest from bonds, providing investors with a regular income stream.

Read What Others Are Saying

General Motors: U.S. Q2 and First Half Sales: Growing in EVs, Pulling Ahead in Trucks and Loading the Bases with New SUVs

CNBC: GM reports best U.S. quarterly sales since 2020

Popular ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some popular ETFs include the following:

1. SPDR S&P 500 ETF (SPY):

   • This ETF aims to mirror the performance of the S&P 500 Index, which includes General Motors among its holdings. It provides broad exposure to the US large-cap market.

2. Vanguard Consumer Discretionary ETF (VCR):

   • This ETF focuses on the consumer discretionary sector, which includes automotive companies like General Motors. It offers targeted exposure to the sector where GM operates.

3. iShares U.S. Consumer Goods ETF (IYK):

   • This ETF includes companies in the consumer goods sector, encompassing automotive manufacturers like General Motors. It provides a more specific focus on consumer goods within the US market.

4. First Trust NASDAQ Global Auto Index Fund (CARZ):

   • This ETF specifically targets the automotive industry, giving investors direct exposure to global auto manufacturers, including General Motors.

5. Fidelity MSCI Consumer Discretionary Index ETF (FDIS):

   • Similar to VCR, this ETF tracks an index of consumer discretionary stocks, offering exposure to companies like General Motors within the consumer discretionary sector.