The Finance Class

Business and stocks, explained in simple words.

Tag: autos

  • GM Is Leaving the NYSE for Nasdaq After 115 Years — Here’s Why It Matters

    GM Is Leaving the NYSE for Nasdaq After 115 Years — Here’s Why It Matters

    General Motors is making a move it has not made in more than a century. The carmaker will leave the New York Stock Exchange and list its shares on Nasdaq instead, starting November 17.

    The ticker will stay the same. The company will still trade as GM. Shareholders do not need to do anything.

    So why does a change of stock exchange matter? Because GM is trying to change how investors see it. It no longer wants to be judged only as an old car company. It wants to be seen as a technology company too.

    What Happened

    GM announced on October 27 that it will transfer its common stock listing from the NYSE to the Nasdaq Global Select Market. Trading on the NYSE will continue through the close on November 16. Nasdaq trading is expected to begin the next day, November 17.

    The company’s board approved the move the day before the announcement. GM said the GM ticker will not change, and existing shareholders do not need to take any action.

    The switch is a big symbolic break. GM first listed on the NYSE in 1911, and it returned to the exchange in 2010 after its bankruptcy reorganisation. Leaving now ends a relationship that, with that interruption, stretches back 115 years.

    Why It Happened

    GM’s chief financial officer, Paul Jacobson, tied the move to the company’s direction. He said GM’s customer-focused, technology-driven strategy is creating value for shareholders, and described Nasdaq as a natural home for the listing as the company grows.

    That strategy covers more than building cars. It includes software, driver-assistance features such as Super Cruise, connected services through OnStar, and electric vehicles. Nasdaq is best known as the home of large technology companies, so listing there fits the image GM wants.

    There is also a practical reason. A Nasdaq listing makes GM eligible for possible inclusion in the Nasdaq-100 Index, which tracks 100 of the largest non-financial companies listed on Nasdaq. Inclusion is not automatic, and GM has not announced that it will join the index. But eligibility alone opens the door to buying from funds that track the index.

    Key figures

    • NYSE trading through: close on November 16, 2026
    • Nasdaq trading expected from: November 17, 2026
    • Ticker after the move: GM (unchanged)
    • First NYSE listing: 1911; relisted in 2010
    • Share move on announcement day (October 27): up about 5.5%, with a further gain of about 2.4% the next day
    • Market value around the announcement: about $64.4 billion; shares closed at $76.31 on Monday, October 26

    Why It Matters

    A stock exchange listing does not change what a company makes or how much money it earns. GM will still build the same cars, employ the same workers, and face the same costs the day after the move.

    What it can change is who notices the stock. Index funds that follow the Nasdaq-100 can only buy companies listed on Nasdaq. If GM ever joins that index, those funds would need to buy its shares. That kind of steady, automatic demand is one reason companies care about index membership.

    It can also change the comparison set. On the NYSE, GM sits next to many banks, energy companies, and industrial firms. On Nasdaq, it sits next to technology companies. That may help some investors value its software and driver-assistance work more highly — but it can also invite tougher comparisons with companies that grow much faster.

    GM is not the first big company to make this jump. Walmart, DoorDash, and Palantir have all moved to Nasdaq in recent years for similar reasons, including index eligibility and brand visibility.

    What Happens Next

    The next test is simple: does the November 17 transfer go smoothly, and does anything else follow? Watch for any update on Nasdaq-100 eligibility, which is decided by the index provider, not by GM itself. Also watch GM’s hybrid plans — the company is preparing its Lansing plant for future hybrid versions of popular SUVs — because those product decisions will matter far more for profits than the exchange name on the stock ticker.

    Final Thoughts

    This is a branding and market-structure story, not a new car launch. GM is betting that being listed alongside technology companies will help investors see its software, driver-assistance, and electric-vehicle work more clearly. The move costs shareholders nothing and changes no shares they own. Whether it changes how the market values GM will take much longer than one trading day to judge.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC, https://www.cnbc.com/2026/10/27/gm-nasdaq-nyse-stock-listing.html ; GM Authority, https://gmauthority.com/blog/2026/10/gm-moving-stock-listing-from-nyse-to-nasdaq/

    Related reading: Ford’s earnings

  • Ford Beats Earnings Expectations, but Warns 2027 Profit Will Be Flat

    Ford Beats Earnings Expectations, but Warns 2027 Profit Will Be Flat

    Introduction

    Ford reported a better third quarter than Wall Street expected and nudged its full-year profit outlook higher. Then it gave investors the news they did not want: next year’s profit will probably be no better than this year’s, because rising costs are eating into gains.

    What Happened

    Ford reported revenue of $49.5 billion for the third quarter, down 2% from a year earlier but ahead of forecasts of about $48.9 billion. Adjusted earnings per share came in at 49 cents, beating the 40 cents analysts expected. Adjusted operating profit (EBIT) rose 3% to $2.7 billion, about $300 million ahead of consensus. Net income was $2 billion, down $400 million from a year earlier, and adjusted free cash flow was $4.7 billion.

    By segment: Ford Blue, the traditional gas and hybrid vehicle business, earned about $1.4 billion, down 10% from a year earlier. Ford Pro, the commercial business, earned about $1.7 billion, down 16%. Model e, the electric vehicle unit, lost about $1.1 billion — still a loss, but 25% smaller than a year ago.

    Ford raised the bottom end of its 2026 adjusted EBIT guidance to $10.5 billion–$11 billion, from $10 billion–$11 billion. Free cash flow guidance of $6 billion–$7 billion did not change.

    The stock’s reaction told the story of the outlook. Shares rose about 2% on the day of the report, then slipped about 2% the next morning as investors digested the 2027 warning.

    Why It Happened

    The beat came from strong demand for trucks and SUVs, which carried the traditional business even as costs rose. But the cost side is getting worse, not better. Ford said commodity headwinds are now approaching $2.5 billion for 2026, up from just over $2 billion expected before. Inflation linked to the war in Iran has pushed up logistics, raw materials, and chip costs, and high gas prices are adding to freight and energy bills.

    For 2027, Ford expects about $2 billion of additional pressure from commodities, memory chips, and logistics. That is why profit is expected to be roughly flat next year — the company has to run faster just to stand still.

    Why It Matters

    Ford’s warning is a window into a problem facing all carmakers: input costs are rising again, and there is no quick relief. CEO Jim Farley called 2027 a “foundational year” on the way to an 8% adjusted EBIT margin target by 2029, and CFO Sherry House said plainly, “We’re not expecting relief any time soon” from commodity inflation.

    It also shows how Ford’s strategy is shifting. The company scaled back its money-losing EV business in late 2025 to focus on hybrids and more affordable EVs, booking a $19.5 billion loss on that decision. The EV unit is still losing money, but the loss is shrinking, and Ford is aiming for Model e breakeven by 2029 and an 8% adjusted EBIT margin by 2029, up from 6.1% in the first nine months of this year.

    What Happens Next

    Ford’s affordable EV, called Fathom and priced from $28,350, is still scheduled for late 2027. The company also plans to offset cost pressure with $1 billion of material and warranty cost cuts, plus growth from energy storage batteries, software, and services.

    The near-term test is the fourth quarter. Guidance implies operating profit of about $2.2 billion for the final three months, roughly in line with analyst expectations. If Ford hits that, the “flat 2027” story becomes a story about holding ground while costs rage — not a collapse, but not growth either.

    Final Thoughts

    Ford beat expectations and raised its 2026 outlook, which is genuinely good news. But the market looked past the quarter to next year, where $2 billion of cost pressure means profit goes sideways. For investors, the question is no longer whether Ford can execute — it just did — but whether it can outrun inflation long enough for its cheaper EVs and cost cuts to change the maths.

    Key figures

    • Revenue: $49.5 billion, down 2% year over year (beat ~$48.9 billion expected)
    • Adjusted EPS: $0.49 (expected $0.40)
    • Adjusted EBIT: $2.7 billion, up 3%
    • 2026 adjusted EBIT guidance: $10.5–$11 billion (was $10–$11 billion)
    • 2027 outlook: profit roughly in line with 2026
    • 2027 cost headwind: ~$2 billion; 2026 commodity headwind: ~$2.5 billion
    • Model e Q3 loss: ~$1.1 billion (improved 25% year over year)

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC — https://www.cnbc.com/2026/10/28/ford-motor-f-earnings-q3-2026.html — and Zacks and Motley Fool coverage of the earnings call.

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