GM Ends 115-Year NYSE Run, Moving to Nasdaq in Bid for Tech Stock Revaluation

General Motors (GM) is transitioning from the New York Stock Exchange (NYSE) to the technology-oriented Nasdaq in an effort to reposition itself as a tech company. This change follows 115 years as a NYSE-listed firm. The move is slated for Nov. 17, and GM's stock symbol, GM, will stay the same. The company's CFO, Paul Jacobson, highlights that the transition aligns with their strategy focusing on customer-centric technology.

GM's goal is to boost its valuation, as the company's software businesses, which include autonomous driving and connected vehicle services, have not been adequately represented in its share price. GM's forward P/E ratio is around 5, significantly lower than the average of 30 for Nasdaq-100 companies. Analyst Don Bilson points out that services like GM's OnStar and Super Cruise, known for double-digit growth, are still undervalued.

GM aims to tap into the Nasdaq-100 index, which could draw investment from ETFs and other index-tracking vehicles. GM's technological advancements include a fourth-generation electric vehicle platform, battery tech, and a new computing platform. They aim to have autonomous driving in the electric Cadillac Escalade by 2028. GM's software revenue, including OnStar with 12 million users and Super Cruise with a 60% revenue increase, is also a growth area.

However, some analysts remain doubtful. While GM's share price rose 5.54% on the day of the announcement, Wall Street has noted that moving to Nasdaq is not guaranteed to increase share value. Past cases, like Walmart and Palantir, show that the effect of listing changes on share prices can be mixed and dependent on financial performance.

GM will need to show real progress and profitability in autonomous driving and electric vehicles, not just a change in listing location, to succeed on Nasdaq.