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If the quarter of the moment was the lowest for General Motors (NYSE: GM) and GM, it arose from the OK recession.
The company lost $800 million, or 50 cents consistent with a diluted, adjusted share, at a profit of $16.8 billion. He ended the quarter with $30.8 billion in cash after $7.8 billion in cash.
However, the market reacted through the sale. GM shares began on August 3 at approximately $24.75, 30% less than in the year.
GM’s original plan to slowly build electricity generation with the benefits of its pickup trucks and SUVs. But analysts now doubt that he can do it. CEO Mary Barra has slowly reduced costs, closed factories and sold foreign units, however, the new coronavirus has reshaped the market faster.
GM responded by sending authorized car personnel to its truck factories. He finds it difficult to maintain his production goals even when he moves with all his strength.
Barra now tells reporters that he expects a brief and abrupt recession and a recovery until 2021. Analysts think he would possibly be too optimistic.
Barra said the company will invest $20 billion in electric and self-driving cars over the next five years. Five years ago, that would have been scary. But with Tesla (NASDAQ: TSLA) now with a market capitalization of $266 billion, about 7.5 times GM, the company is obsolete.
Years of doubts about the increase in electricity are now wreaked havoc. Tesla’s Model Y has already surpassed GM’s flagship electric product, the Chevy Bolt, in sales. The Bolt is now the best-selling electric 20th, too small for the market.
GM has begun the structure of a 30 GW battery plant in Ohio, with a capacity comparable to that of the Tesla “Gigafactory” in Nevada. The Ultium battery produced there will have 20 other configurations to force the full range of GM. A network of 2,700 fast charging stations is expected to be configured for Ultium by 2025.
GM is preparing to introduce its new flagship electric product, called The Cadillac Lyriq. The car to be displayed on August 6 will have features that will not be put into production directly.
The “iq” can also be the center of an all-electric logo spin-off, with its own network of brokers. Such a logo can only produce 100,000 cars a year, however, that’s part of Tesla’s current rate. So what about Buick, GM, Chevy and Cadillac?
Analysts are no longer Mary Barra or Ford Motor (NYSE: F: NYSE CEO) Jim Hackett on the long-term nature of the automotive industry.
They no longer see it as a production company. They see it as Elon Musk sees it: as a generation company.
They consider Tesla to outperform all of its rivals and lose sight of it, even though its production is still only a fraction of GM’s. They’re GM’s diversity of gases to be dinosaurs. They are betting on a complete transformation of transport infrastructure, a transformation that can be complete before GM prepares for competition.
Dana Blankenhorn has been a journalist for money and generation since 1978. It’s the environmental mystery Bridget O’Flynn and the Bear, found in Amazon’s Kindle store. Write to [email protected] or stay on Twitter on @danablankenhorn. At the time of writing, he had no action in the corporations discussed in this story.
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