Why Jim Lebenthal Thinks GM Will Reach An All-Time High This Year

General Motors Co GM will reach a new all-time high in 2021, Cerity Partners' Jim Lebenthal said Thursday on CNBC's "Fast Money Halftime Report."

What Happened: General Motors sold 688,236 vehicles in the U.S. in the second quarter, representing a 40% year-over-year increase. 

“The U.S. economy is accelerating, consumer spending is robust and jobs are plentiful. Consumer demand for vehicles is also strong, but constrained by very tight inventories. We expect continued high demand in the second half of this year and into 2022," said Elaine Buckberg, chief economist of General Motors.

Related Link: Ford Vs. General Motors: A Technical Analysis

Why It Matters: Lebenthal expects General Motors to trend higher in the second half of 2021 for the following reasons:

• Average transaction prices are at record highs.
• Incentives are incredibly low.
• The chip shortage is easing.
• Retail demand is at a record high.
• Used car prices are high.
• The company's Cruise robotaxi division launched in San Francisco.

"There are too many good things going on," the stock will set a new high this year, he said.

Price Action: General Motors has traded as high as $64.30 and as low as $23.33 over a 52-week period.

The stock closed at $59.11.

Photo: courtesy of General Motors.