GM Says Goodbye to Bolt.

In this buzz: U.S. Stock market recap and some news about GM and Bolt; and more…

U.S. Stock Market:

• S&P 500 and Nasdaq 100 are moderately lower, reaching 1-1/2 week lows.
• Weakness in regional bank stocks is weighing on the overall market after First Republic Bank reported smaller-than-expected Q1 deposits.
• Cybersecurity stocks are falling after Tenable Holdings cut its full-year revenue forecast.
• Gauge of U.S. Apr consumer confidence fell more than expected to a 9-month low, which extended losses in stock indexes.
• Lower T-note yields provide underlying support to stocks.
• Markets predict an 84% chance of a 25 bp rate hike by the Federal Reserve at the May 2-3 FOMC meeting and have fully priced in a 25 bp rate hike by the ECB at its May 4 ECB meeting.

General motors:

• Ending production of its electric Chevrolet Bolt models by the end of the year because of outdated battery cells in the cars.
• GM plans to produce more than 70,000 Bolt models this year and retool the Orion, Michigan plant for the production of electric Chevy Silverado and GMC Sierra trucks.
• GM announced plans to invest more than $3 billion with Samsung SDI to build a new battery cell manufacturing plant in the United States that is targeted to begin operations in 2026.
• GM reported better-than-expected Q1 results, raised its 2023 adjusted earnings expectations, and increased its expectations for adjusted automotive free cash flow.

General Motors is ending production of its electric Chevrolet Bolt models by the end of the year. CEO Mary Barra announced that the battery cells in the cars are an older design and chemistry than the automaker’s newer electric vehicles.

Ironically,
… this comes amid record production and sales of the vehicle for mass-market consumers, which was GM’s initial goal.
– The Bolt never caught on as well as many executives hoped, as EV sales overall remained minuscule outside of Tesla.
– The Bolt also suffered a major setback more recently as GM recalled all of the Bolts ever produced due to a supplier-related battery issue that caused several fires.

However,
… GM plans to produce more than 70,000 Bolt models this year as it targets to sell more than 400,000 EVs from early 2022 through mid-next year in North America. The Orion, Michigan, plant, which currently produces the Bolts, will be retooled in preparation for production of electric Chevy Silverado and GMC Sierra trucks scheduled for next year. GM expects to launch its upcoming EVs far faster than it has its high-end Hummer models and Cadillac Lyriq, which have been rolling out at a snail’s pace compared to its traditional vehicles.