**Automaker Aims to Reassure Investors Amid Slowing Demand**
Detroit – General Motors (GM) is gearing up to host its capital markets day, where CEO Mary Barra will attempt to convince investors that the company can continue to outperform Wall Street’s expectations despite challenging market conditions. This comes as the automaker faces slowing consumer demand, intense competition, and shifting investor sentiment.
**Electric Vehicles and Hybrids Take Center Stage**
Wall Street analysts are eager to hear about GM’s plans for electric vehicles (EVs) and hybrids, as well as its embattled Cruise autonomous vehicle unit. The company is expected to highlight its flexibility in producing both EVs and vehicles with traditional internal combustion engines, showcasing its dual strategy at its Tennessee-based vehicle assembly and Ultium EV battery plants.
**A Shift in Focus**
Unlike its previous investor days, which focused on ambitious long-term financial targets, GM is expected to take a more pragmatic approach this time around. Barclays analyst Dan Levy notes that the company’s theme has shifted from “Growth Motors” to “praGMatic Motors,” reflecting a more grounded approach to its near-term targets and messaging.
**Investor Expectations**
Despite GM’s track record of outperforming Wall Street’s expectations, several analysts have low expectations for the event. However, Wolfe analyst Shreyas Pati believes that relatively low expectations could provide room for GM’s message to be more constructive-than-anticipated.
**Stock Performance**
GM’s stock has been under pressure lately, despite billions of dollars in buybacks. Shares are up roughly 28% for the year but have fallen 9% from a high of more than $50 reached in July. The stock also saw a 5.4% drop in one day last month, its second-largest daily decline this year.
**China Restructuring and Cruise Funding**
Investors are also seeking updates on GM’s restructuring in China, which has been in a years-long freefall, as well as its plans for funding its Cruise autonomous vehicle unit. The company’s operations in China recorded a loss of $104 million during the second quarter, its second consecutive quarterly loss.
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