General Motors (NYSE: GM) produced record adjusted earnings per share (EPS) of $7.07 for 2021, and management expects equally impressive results for 2022. Yet GM has lost 42% of its value year to date.

The markets are overacting to concerns over chip shortages and their impact on production. And despite the fact that production and sales of its most profitable vehicles have held up, GM remains the Rodney Dangerfield of automotive stocks, even as it expects to double revenue to $280 billion by the end of the decade.

So far, Wall Street isn't buying it. The concern is that inflation, rising interest rates, and a possible recession and its effects on increasingly cash-strapped consumers will torpedo demand. Such concerns plague all automakers, however, including Wall Street darlings Tesla and Rivian.

Continue reading

Source Fool.com