General Motors Stock Fair Value – California Regulators Could Fine GM Over Cruise Issues

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GENERAL ($NYSE:GM): It produces and sells cars, trucks, and other vehicles under a variety of brands, including Chevrolet, Cadillac, and GMC. In recent news, California regulators are considering imposing a fine on GM over Cruise issues. Cruise is an autonomous vehicle technology company owned by GM. California regulators are reportedly looking into whether GM misled investors about the progress of its self-driving car technology. The potential fine comes after reports that the efforts of Cruise to produce driverless cars had been hampered by the lack of progress in its technology development. There have been allegations that GM misled investors by making overly optimistic predictions about the technology’s progress and potential.

GM, however, has denied these allegations and maintains that its statements about Cruise were accurate. The California Department of Motor Vehicles has not yet determined the amount of any potential fine it would impose on GM. If the agency decides to impose a fine, it could be hefty, as California has very strict laws about fraudulent business practices, especially when it comes to investors. This decision could have a significant impact on both GM’s finances and its reputation.

Price History

On Monday, California regulators announced that they could fine GENERAL MOTORS for not satisfying requirements related to the testing of self-driving vehicles on the state’s roads. This news did not seem to affect the company’s stock, as shares of GENERAL MOTORS opened at $32.7 and closed at $33.1, up by 2.2% from its prior closing price of $32.4. According to the California Department of Motor Vehicles, GM is disregarding their rules by going against the terms of their permit and not providing the required information on the progress of their testing program. It is yet to be determined how much fines might GM need to pay if they are found liable. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for General Motors. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for General Motors. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for General Motors. More…

Key Ratios Snapshot

Some of the financial key ratios for General Motors are shown below. More…

Analysis – General Motors Stock Fair Value

At GoodWhale, we have conducted an analysis of GENERAL MOTORS‘s financials. Our proprietary Valuation Line has calculated the fair value of GENERAL MOTORS share to be around $56.1. Currently, GENERAL MOTORS stock is traded at $33.1, which is undervalued by 41.0%. This presents itself as an opportunity for investors who want to take advantage of the undervaluation of shares and potentially gain from it. More…

Peers

General Motors Co, Stellantis NV, Toyota Motor Corp, and Ford Motor Co are all leading automobile manufacturers. They each have their own unique history and strengths, but they are all competitive in the market today.

– Stellantis NV ($NYSE:STLA)

Stellantis NV is a holding company that was created in 2021 through the merger of Fiat Chrysler Automobiles and Groupe PSA. The company is headquartered in the Netherlands and is majority owned by the French automaker Groupe PSA. Stellantis is the fourth-largest automaker in the world by sales, with a portfolio of 14 brands that include Fiat, Chrysler, Jeep, Dodge, Ram, Alfa Romeo, Lancia, Maserati, Peugeot, Citroën, DS, Opel, and Vauxhall.

– Toyota Motor Corp ($TSE:7203)

Toyota Motor Corp is a Japanese multinational corporation that manufactures vehicles. It has a market cap of 27.43T as of 2022 and a Return on Equity of 11.32%. The company produces vehicles under five brands, including Toyota, Lexus, Daihatsu, and Hino.

– Ford Motor Co ($NYSE:F)

Founded in 1903, Ford Motor Company is an American multinational automaker that has its main headquarters in Dearborn, Michigan. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling Motors of China. It also has joint-ventures in China, Taiwan, Thailand, Turkey, and Russia. The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.

As of 2022, Ford Motor Company’s market capitalization is $47.32 billion, and it has a return on equity of 23.7%. The company’s main business is the manufacture and sale of automobiles and light trucks. In addition to its core automotive business, Ford also operates in the financial services sector through its Ford Motor Credit Company subsidiary.

Summary

General Motors is currently facing potential fines from the California Department of Motor Vehicles due to issues related to its Cruise autonomous vehicle testing program. Investors should be aware of the potential implications of the fine, such as the possibility of increased regulatory scrutiny, financial burden, and damage to its reputation. Additionally, investors should consider other factors such as GM’s financial and operational performance, R&D investments, and competitive environment when deciding whether to invest in the company.