GM’s stock closes below IPO price for first time since October 2020

Mary Barra, Chair and CEO of the General Motors Company (GM), speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 2, 2022.

GM shares closed below the initial public offering price for the first time in over a year on Monday.

GM's stock closed at $32.28 a share, down by 7.8%, as a broad market sell-off pushed Ford Motor and Chrysler to new 52 week lows. With fears of a recession growing and investors questioning whether the automaker's most profitable days are behind it, shares of GM have fallen 45% this year.

GM and other automakers have reported record profits due to resilient consumer demand and supply chain problems.

The situation caused new car prices to go up with little incentive from the companies, leading to record profits despite lower sales.

Hours after the company's annual shareholder meeting, the stock closed below the IPO price.

Mary Barra said the company's "clear priority" is to "accelrate our EV plans." GM is going to invest $35 billion in electric vehicles and self-drive vehicles by the year 2025.