Last Friday General Motors Co (GM) raised the price of its Hummer EV pickup truck by $6,250 in an attempt to mitigate the effect of rising commodity and shipping costs as demand for cars and trucks surges.
Currently priced within a range of $80,000 to $110,000, GM’s Hummer EV has over 77,500 existing bookings.
Yet, the company said those bookings would not be affected by the price hike, since it would take effect for vehicles reserved on or after June 18th.
At a conference sponsored by Deutsche Bank last week, General Motors’ Chief Financial Officer Paul Jacobson told investors that the auto maker had managed to offset $5 billion in higher supply chain costs by raising prices and reducing expenses.
General Motors shares closed higher for the fifth time in the past ten trading sessions in New York on Friday. The stock went up 1.46% ($0.46) to $31.88, after touching an intraday low at $30.65. The latter has been a price level not seen since October 6th 2020 ($30.30).
The shares of General Motors Company have retreated 45.63% so far in 2022 compared with a 22.90% loss for the benchmark index, S&P 500 (SPX).
In 2021, General Motors’ stock went up 40.80%, thus, it outperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 12 out of 15 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $56.93.