Why General Motors Stock Crashed Today
General Motors (NYSE: GM) reported its second-quarter 2021 earnings today, and the stock is reacting strongly. Revenue of $34.2 billion handily beat expectations of about $31 billion, but earnings per share came in short of estimates, which is what investors appear to be focusing on today. As of 12:50 p.m. EDT, GM shares were down 8.4% following the report.
Strong vehicle sales in the U.S. were led by Chevrolet trucks and crossovers. GM said in a statement it "gained significant retail market share in the full-size pickup segment in the United States." But bottom-line earnings were impacted by $1.3 billion in warranty costs due to vehicle recalls, most of which was for battery issues with the company's electric Chevrolet Bolt.
Source Fool.com
