Why Investors Shouldn't Sell General Motors Stock

Following reports of two vehicles catching fire, General Motors Co GM told owners of its 2017 to 2019 Bolt electric vehicles they should refrain from parking inside or charging their vehicles unattended overnight.

The news regarding the vehicle fires is not a reason to sell the stock, tradinganalysis.com CEO Todd Gordon said Thursday on CNBC's "The Exchange."

The National Fire Protection Association estimated that there were 200,000 vehicle fires resulting in 560 deaths in 2018, Gordon told CNBC. 

Investors need to understand there is going to be a break-in period with new technology, he said. 

General Motors is trading at 8.5x forward earnings, while Ford Motor Co F trades at 10.5x forward earnings, he said. 

Gordon said he owns the stock and expects it will trade back up toward $65 per share sometime soon, he said. 

Related Link: Why GM's Stock Should Be Trading At $100 Per Share

GM Price Action: General Motors has traded as high as $64.30 and as low as $24.44 over a 52-week period.

General Motors shares lost 1.82% Thursday, closing at $56.95. 

Photo: courtesy of General Motors.