5 Auto Companies Facing Worst Declines Amid Global Chip Shortage

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 86

General Motors Company (NYSE:GM) is ranked first on our list of 10 auto companies facing the worst declines amid global chip shortage. The firm designs, builds, and sells automobiles and is headquartered in Michigan. The sales of the firm for August this year declined by 33% year-on-year due to the chip shortage crisis, the firm revealed this month. Earlier in the year, the firm had said it expected earnings to be cut by $1.5 billion this year due to the chip crisis. 

On August 5, investment advisory Deutsche Bank maintained a Buy rating on General Motors Company (NYSE:GM) stock with a price target of $68, identifying the firm as a “short-term investment idea” in a letter to investors. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in General Motors Company (NYSE:GM) with 34 million shares worth more than $2 billion. 

Junto Investments, in its Q4 2020 investor letter, mentioned General Motors Company (NYSE:GM). Here is what the fund has to say about General Motors Company in its letter:

“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”

You can also take a peek at 12 Best Big Tech Stocks to Buy Right Now and 10 Stocks That Just Received Sell Rating from Analysts.

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