Why General Motors Inc. (GM) Went Down On Thursday?

We recently published a list of 10 Firms Mirror Wall Street Slump on Thursday. In this article, we are going to take a look at where General Motors Inc. (NYSE:GM) stands against other firms that mirrored Wall Street slump on Thursday.

Wall Street’s shares traded lower anew on Thursday, as investor sentiment continued to be dampened by President Donald Trump’s fresh tariffs on US imports.

The tech-heavy Nasdaq fell the heaviest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent.

The market decline was mainly weighed down by the performance of car manufacturers after Trump announced a 25-percent tariff on all vehicles imported beginning April 2.

Ten companies mirrored the broader market decline. In this article, we listed Thursday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

A group of technicians in a garage, inspecting car parts and ensuring safety compliance.

General Motors Inc. (NYSE:GM)

General Motors fell for a second day on Thursday, shedding 7.36 percent to end at $47.20 apiece as investors disposed of the company’s shares following President Donald Trump’s looming imposition of a 25-percent tariff on all imported vehicles, parts, and accessories.

While originally an American company, GM remains heavily affected by its potential exposure in Mexico and potential taxes on parts and services sourced internationally.

Following the tariff announcement, JP Morgan downgraded its rating for the company to $53 per share from $64 previously, as it expects between $10.5 billion and $13 billion tariff bill upon the imposition of levies.

It can be learned that GM was one of the automakers that received a one-month tax reprieve from Trump on their autos coming through the US, Mexico, and Canada. The reprieve is scheduled to end next week, on April 1.

Overall, GM ranks 9th on our list of firms that mirrored Wall Street slump on Thursday. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as GM but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.