Here’s One Reason Why GM Stock is Down Today
NEW YORK (TheStreet) -- General Motors (GM) - Get Report stock is declining 1.96% to $30.57 in afternoon trading on Friday after the Detroit-based automaker halted sales of certain SUVs in the U.S. due to fuel efficiency mislabeling.
Sales of about 60,000 new SUVs will be temporarily halted because the estimated fuel economy should be about one or two miles per gallon less on the label, Reuters reports.
Models affected include the GMC Acadia, the Buick Enclave and the Chevrolet Traverse, which will receive a new label before being sold.
Additionally, GM completed the $1 billion acquisition of Cruise Automation, a manufacturer of autonomous-driving software, according to the Wall Street Journal.
The acquisition will help GM's plans to test self-driving taxis with Lyft.
Separately, General Motors has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and impressive record of earnings per share growth.
You can view the full analysis from the report here: GM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
