General Motors Co.

Share Analysis from 2 January 2018 to 31 December 2018

Introduction
This report aims to analyze the movements of General Motors’ (GM) share prices during a one-year
period from 1 January 2018 to 31 December 2018, followed by a prediction for future development of
its share prices.

Share analysis

Overall, GM share prices experienced a downward trend with frequent fluctuations in 2018. The
company started the period at $41.24 on 2 January; however, from 24 January, its share prices
constantly went down until reaching the first low of 2018 at $34.87 towards the end of the first quarter.
Pairing with this 15% decline, GM first-quarter revenue also fell 3.1% to $36.1 billion, which was
explained by an amount of factory downtime when the company attempted to retool its factories for
truck manufacturing.

During the second quarter, GM shares witnessed some positive movements. On 31 May, the stock
suddenly soared at $41.65, increasing by 11% compared to the day before as a result of Japanese
SoftBank Vision Fund’s plan to invest $2.25 billion in GM Cruise Holdings’ self-driving technology. GM
stock then continued to rise for a few days until peaking at $44.85 on 11 June.

In the following months, auto tariffs on foreign cars imposed by Trump have caused higher expenses on
raw materials and potential job losses, and subsequently resulted in a constant decline in GM share
prices. 24 October was recorded as the day prices hit a new low at $30.56, representing a 25.45%
decrease with respect to 2 January. Prices did recover afterwards, when GM declared its third-quarter
financial performance was better than expected in late October, but gradually went down again and
ended 2018 with a price of $33.45 per share, presenting a final 18.38% fall compared to the start of the
year.

Forecast
The GM share prices are expected to continue to grow in the beginning of 2019 due to the slight
recovery of share prices during the last quarter.