Investors of General Motors (GM) can finally breathe a sigh of relief as some positive news comes their way. While concerns regarding the United Auto Workers strike, the Cruise autonomous-driving unit, and the state of the economy continue to loom, there is a silver lining worth noting.
MotorTrend has recently named the all-electric Chevy Blazer its SUV of the year, and this announcement has garnered significant attention. According to the review, “The Blazer EV establishes Chevrolet as a serious force in the electric vehicle space.” It further emphasizes that it is not just novel powertrain solutions or slick design details that make the Blazer EV remarkable, but rather how these factors synergistically combine with overall product excellence. This recognition from MotorTrend sets the stage for Chevy Blazer EV to be crowned as the 2024 SUV of the Year.
This accolade gives hope to investors who are eagerly anticipating GM’s success in the electric vehicle market. Amidst tough competition, both GM and other traditional automakers are in dire need of a breakthrough electric vehicle. In the third quarter, GM sold approximately 20,000 battery electric vehicles (BEVs) in the U.S., a slight decline from the record-breaking first quarter. With a market share of about 6% in the U.S. and 3% of overall sales, there is room for growth.
In contrast, U.S. BEV sales soared to an all-time high of 313,086 units in the third quarter, as reported by data provider Cox Automotive. Tesla dominates the U.S. BEV market with a share of roughly 50%. Among traditional auto makers, BMW has shown promising sales figures with around 16% of unit sales in the U.S. coming from all-electric models. Now, GM, Ford Motor, and Stellantis have some catching up to do to stake their claim in this lucrative market.
As the automotive industry continues to evolve and embrace electric vehicles, the recognition bestowed upon the Chevy Blazer EV by MotorTrend serves as a beacon of hope for GM and its investors. With a solid product in their portfolio, GM has the potential to establish itself as a serious contender in the electric vehicle arena, leaving a lasting impact on the industry.
Electric Vehicle Sales in the U.S.
In the third quarter, Ford sold approximately 21,000 battery electric vehicles (BEVs) in the United States. Stellantis, on the other hand, did not sell any BEVs domestically but managed to sell around 68,000 BEVs worldwide during the same period. Tesla continued to dominate the global market with approximately 435,000 BEVs sold, surpassing its closest competitor, BYD (1211.Hong Kong).
Tesla’s Success in America
Tesla’s Model Y EV proved to be a huge success in the American market, with nearly 100,000 units sold in the third quarter. It is on track to become the best-selling EV model globally by unit volume in 2023, surpassing both gas-powered and electric vehicles.
The Potential of the EV Blazer
Traditional automakers strive to sell tens of thousands of units of a BEV model per quarter. The EV Blazer has the potential to achieve such success. As a popular SUV, GM has already sold around 49,000 Blazers in the first nine months of 2023. The introduction of the electric Blazer has just begun, with only 19 units shipped in the third quarter.
Stock Performance and Recent Setbacks
Despite these promising developments, GM’s stock has experienced a decline of 2.5% during midday trading. In comparison, the S&P 500 and Dow Jones Industrial Average saw declines of 0.8% and 0.1%, respectively.
The downward trend in shares follows a 2.3% drop on Tuesday. This was prompted by news that GM’s autonomous vehicle division, Cruise, had its license suspended in California due to an accident involving a pedestrian.
Since July, GM shares have dropped approximately 25%, mainly driven by labor issues that have affected investor sentiment. Meanwhile, the S&P 500 has experienced a more modest decline of about 5% over the same period.
These setbacks occurred alongside the United Auto Workers (UAW) strike against GM, Ford, and Stellantis that began on September 15. The strike is now 40 days old, further impacting the industry.