Motors

Why General Motors Stock Climbed Higher in March

What happened

Shares of General Motors (NYSE:GM) gained 11.9% in March, according to data provided by S&P Global Market Intelligence, as investors cheered the company’s continued push to transform itself into a leader in electric vehicles.

So what

General Motors has laid down the gauntlet in its battle against a generation of electric vehicle start-ups looking to turn the automotive industry on its head. The company has committed $27 billion to investments in electric vehicles through 2025, part of a plan to phase out gasoline- and diesel-powered cars and light trucks by 2035.

The 2022 GM electric Hummer.

Image source: General Motors.

GM early in the month said it was working with partners to establish a second U.S. battery facility to feed its growing appetite.

The stock also benefited from the efforts of another legacy automaker, Volkswagen (OTC:VWAGY), to establish its green credentials. Volkswagen during the month laid out

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Why Churchill Capital IV Stock Dropped After Finally Confirming Its Merger With Lucid Motors

For several weeks, rumors swirled that Churchill Capital IV (NYSE:CCIV) was preparing to merge with Lucid Motors. Lucid, one of the hottest electric vehicle (EV) start-ups, is about to begin delivering its luxury sedan, the Lucid Air, within a few months. At long last, the companies confirmed the deal last night, announcing that Churchill Capital IV and Lucid Motors have entered into a definitive merger agreement. Shares promptly tanked in extended trading.

Just last week, I suggested that I wouldn’t be surprised if this ended up being a “buy the rumor, sell the news” situation. That adage refers to a common phenomenon in the market when an event fails to live up to expectations. Here’s why investors may be disappointed in the deal.

White Lucid Air in a driveway

Image source: Lucid Motors.

How the deal is structured

Over the weekend, Bloomberg reported that a deal might be imminent, suggesting that the announcement could

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AutoNation, Group 1 Automotive, Lithia Motors and Asbury Automotive

For Immediate Release

Chicago, IL – September 2, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AutoNation, Inc. AN, Group 1 Automotive, Inc. GPI, Lithia Motors, Inc. LAD and Asbury Automotive Group, Inc. ABG.

Here are highlights from Tuesday’s Analyst Blog:

4 Undervalued Stocks to Snap Up Right Now

Sometimes, it pays to remember that the markets are always, ultimately, rational.

Which basically just means that good news is rewarded and bad news is punished.

So when there’s good news flowing in, you’ll typically see shares continuing to rise as more and more people find out. Conversely, when there’s some bad news, you’ll find more and more people jumping out of a stock as they find out.

This

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