GM Announces $6 Billion Share Repurchase Amid Strong Q1 Performance and EV Business Growth

Detroit, Michigan, Michigan United States of America
General Motors announced a $6 billion share repurchase authorization.
GM is growing and improving the profitability of its electric vehicle business while maintaining the profitability of its internal combustion engine business.
GM now expects to produce 200,00-250,0 new electric vehicles in 2024, down from a previously stated target of 2oo,ooo-3oo,ooo.
In Q1 2024, GM increased its common stock dividend from $0.09 to $0.12 per share.
The decision follows a $10 billion stock buyback plan announced by GM in November 2023.
GM Announces $6 Billion Share Repurchase Amid Strong Q1 Performance and EV Business Growth

In a major move to return cash back to shareholders, General Motors (GM) announced on June 11, 2024, that its Board of Directors has approved a new share repurchase authorization to repurchase up to $6 billion of the company's outstanding common stock. This comes after GM outperformed Wall Street estimates in the first quarter due to strong demand for gas-powered vehicles. The decision also follows a $10 billion stock buyback plan announced by GM in November 2023.

GM's focus on profitability is evident as it continues to grow and improve the profitability of its electric vehicle (EV) business while maintaining the profitability of its internal combustion engine (ICE) business. The company is deploying capital efficiently, allowing it to return cash to shareholders. In Q1 2024, GM increased its common stock dividend from $0.09 to $0.12 per share.

Despite the growing demand for EVs and GM's ambitious plans for electric vehicle production, the company has slightly adjusted its targets downwards. It now expects to produce 200,000-250,00 new electric vehicles in 2024, down from a previously stated target of 2oo,ooo-3oo,ooo. This adjustment does not seem to have affected GM's stock performance; the company's shares gained 1.4% following the buyback news after rising 4.1% on Monday.

GM's announcement of its new $6 billion share repurchase plan comes as Ford Motor (F) and Stellantis (STLA) lost ground on Tuesday, and Tesla (TSLA), the largest automaker by market capitalization, slid below a key level. GM's CFO Paul Jacobson said that the company is “growing and improving the profitability of our EV business,” adding that this allows them to continue returning cash to shareholders.

The Detroit-based automaker has not yet specified a timeline for the new $6 billion share repurchase plan but plans to complete the remaining $1.1 billion under the previous $10 billion stock buyback agreement by the end of Q2 2024. GM's shares have risen about 50% since the company announced its previous stock buyback plan in late November 2023.


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Confidence

90%

Doubts
  • Are there any potential risks or challenges that could impact GM's ability to maintain profitability in both its EV and ICE businesses?
  • How accurate are the reported figures for GM's electric vehicle production targets?

Sources

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GM approves new $6B stock buyback on strong demand for gas-powered vehicles

Fox Business Network Breck Dumas Tuesday, 11 June 2024 21:52
  • Unique Points
    • GM's board approved a new $6 billion stock buyback program
    • GM raised its annual forecast after strong sales of gas-powered trucks in the first quarter
    • GM executive vice president and CFO Paul Jacobson stated that the company is focused on profitability of ICE business, growing and improving the profitability of EV business, and deploying capital efficiently
  • Accuracy
    • ]GM's board approved a new $6 billion stock buyback program[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (80%)
    The article contains an appeal to authority fallacy in the quote from GM's executive vice president and CFO Paul Jacobson. It also uses inflammatory rhetoric when referring to GM's strong sales of gas-powered trucks and Chevrolet Malibu production ending, which could be seen as a false dichotomy.
    • . . .GM executive vice president and CFO Paul Jacobson said in a statement announcing the move. . .
    • The Detroit automaker did not give a time frame for the latest buyback but said the move will allow it to "opportunistically repurchase shares" after the completion of the existing plan.
    • It had raised its dividend by 33% to 12 cents per share in January.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GM Extends Breakout With Huge Buybacks, Slower EV Ramp Ahead

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Tuesday, 11 June 2024 20:13
  • Unique Points
    • GM announced a $6 billion share repurchase plan after outlining $10 billion in stock buybacks last November.
    • GM is set to release its U.S. sales report for the second quarter in early July.
    • The company now expects to produce 200,000-250,000 electric vehicles in 2024, down 10% at the midpoint from a previous target of 2oo,ooo-3oo,ooo.
    • GM stock gained 1.4% following the buyback news after rising 4.1% on Monday.
    • The company's profitable gas-vehicle business offset weakness in electric vehicles last year.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    The article contains some instances of appeals to authority and dichotomous depictions, but overall the author's assertions are supported by facts and data. No fallacies were found that would significantly impact the score.
    • ] GM is growing and improving the profitability of its EV business.[/
    • ] But GM gave a somewhat mixed update on its emerging EV business. While EV demand is growing, it’s lower than expected, GM indicated.[
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GM Board Approves New $6 Billion Share Repurchase Authorization

General Motors Investor Relations Tuesday, 11 June 2024 21:54
  • Unique Points
    • GM increased its common stock dividend from $0.09 to $0.12 per share in Q1 2024
    • Total shareholder returns for 2023, H1 2024 (estimated) were $11.6 billion with $7.8 billion from repurchases and $3.8 billion from dividends
  • Accuracy
    • GM repurchased $0.3 billion in shares in the first quarter and expects to exhaust the remaining $1.1 billion by end of Q2 2024
    • GM repurchased $300 million worth of shares in the first quarter and plans to buy back the remaining $1.1 billion by the end of the second quarter
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication