General Motors, one of the world's oldest and largest carmakers, announced on Tuesday that it is moving its stock listing from the New York Stock Exchange (NYSE) to Nasdaq, the exchange most associated with tech companies. According to the notice the company filed with the US Securities and Exchange Commission, the stock will keep trading in New York until the market close on November 16 and begin trading on Nasdaq on November 17, under the same GM ticker.
A ticket to the Nasdaq-100
According to the notice, the board approved the move on October 26, and Nasdaq has already approved the listing. One main goal is that the move makes GM eligible for the Nasdaq-100, the index of tech giants such as Apple, Microsoft, Nvidia and Tesla. Joining such an index brings steady demand for the stock from index funds and ETFs that track it. Shareholders do not need to take any action.
A message to investors
Changing exchanges is mostly a technical step, but its message is clear. In recent years GM has invested in electric vehicles, software and autonomous driving, and has been trying to convince investors that it is not just a traditional carmaker. In a market where tech companies trade at far higher multiples than carmakers, that label is worth a lot of money. Tesla, its big rival in electric vehicles, has traded on Nasdaq since its IPO.
Still, changing exchanges does not change the business itself. For investors to value GM as a tech company, it will need to show meaningful revenue from software, services and its new technologies, not just from selling cars.
What it means for Nasdaq
For Nasdaq, it is another win in its long-running competition with the NYSE for America's largest companies. As the line between a "tech company" and any other company blurs, more long-established companies are asking where they should trade.
