GM Sold $2.7 Million of Stock in Embattled EV Battery Maker -- Barrons.com

Ed Lin

General Motors cut its stake in a maker of rechargeable batteries for electric vehicles.

GM Ventures , a unit of GM's General Motors Holdings subsidiary, sold 13.3 million shares of SES AI on Nov. 15 for $2.7 million, an average of 20 cents per share.

GM Ventures now owns 9.8 million shares, according to a form GM Holdings filed with the Securities and Exchange Commission. Coupled with GM Holdings stake of 9.9 million SES AI shares, GM now has overall ownership of 19.7 million SES AI shares, a stake of 6.2%.

Of the SES AI shares owned by GM, 2.1 million shares held by GM Ventures and 836,826 shares held by GM Holdings are restricted earnout shares that GM has the right to acquire upon achieving certain stock-price performance targets.

In response to a request for comment, GM provided this statement: "GM Ventures is beginning the process of reducing its investment position in SES following a fruitful multiyear collaboration that includes the company's public listing, and the completion of our joint-development research. These actions are consistent with GM Ventures practice after a portfolio company's successful listing."

GM had initially invested in SES AI years before that company's January 2021 listing on the NYSE. In September 2024, the NYSE notified SES AI that the company wasn't in compliance with rules for continued listing because the average closing price of SES AI shares was less than $1.00 over 30 consecutive trading days. The notice doesn't result in the immediate delisting, and if shares don't rise in price, SES AI said in a regulatory filing that it intends to consider alternatives, including a reverse stock split.

Boston-based SES AI didn't immediately respond to a request for comment on GM's stock sale or the NYSE notification.

SES AI shares have cratered more than 80% this year, and GM's stock sale comes about two weeks after SES AI reported a third-quarter loss of $29 million, wider than the $13 million loss a year ago.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

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November 21, 2024 09:19 ET (14:19 GMT)

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