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General Motors (GM) Increases High-End Hummer EV's Price

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General Motors Co. GM recently announced a price hike for all new reservations for its already expensive GMC Hummer EV pickup or SUV placed on or after Jun 18. Prices will see an increase of $6,250 to the base manufacturer's suggested retail price (MSRP).

However, the company noted that all existing Hummer EV reservations, regardless of trim or model, placed before Jun 18 will see no price increase.

As for the new reservations placed after Jun 18, the automaker says that final pricing is determined based on selected options and packages, "as well as the price the customer and dealership agree upon at the time of vehicle ordering."

Besides the price increase, GM has announced that customers with an existing reservation for the 3X trim level will be able to tailor-fit their vehicle by selecting their desired options and packages before submitting their order. The prices for options and packages are added to the base MSRP.

The 3X trim level has a starting MSRP of $99,995, but the base price for new reservations placed after Jun 18 will be raised to $106,245.

The price of GM’s Cadillac Lyriq EV increased $3,000 when the brand opened up the order for options outside the debut edition, which began at $59,990. Cadillac escalated the price up to $62,990 for its rear-wheel-drive Lyriq, in May.

GM, however, is of the view that given the Hummer EV's clientele and initial high price point, the latest hike will likely not be an issue for the vehicle's affluent customers. More and more automakers are being forced to hike prices on soaring costs of commodity parts, technology, raw materials and logistics.

Shares of GM have lost 46.2% over the past year compared to its industry's 26% decline.

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Zacks Investment Research


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Zacks Rank & Key Picks

GM carries a Zacks Rank #3 (Hold), currently.

Better-ranked players in the auto space include Wabash National Corporation WNC, sporting a Zacks Rank #1 (Strong Buy) and Fox Factory Holdings FOXF and Standard Motor Products SMP, each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 9% over the past year.

Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.

Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 48.2% over the past year.

Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 3.1% upward in the past 30 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 7.7% over the past year.


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