General Motors Company Shares Trade Below Their IPO Price

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General Motors Company Shares Trade Below Their IPO Price

Despite selling a record 9.9 million vehicles worldwide last year, General Motors shares are trading under the 2010 IPO price of $33. Some believe perception among investors that General Motors and other traditional automotive stocks such as Ford represent the “old school” auto industry could be dragging down GM’s share price.

General Motors shares stuck in neutral

Last year, the auto giant clocked record sales by selling 9.9 million vehicles worldwide and earning $2.8 billion. As highlighted by ValueWalk, in March, General Motors unveiled a capital allocation framework wherein it would reinvest in its business with the objective of driving a 20 or higher return on invested capital through investments in world-class vehicles and leading technology.