General Motors Corp. (GM) shares collapse to a 70 year low as investors see confidence in the auto industry evaporate. GM stocks fell to a record low of $1.52 Friday before recovering slighty to $1.77. GM’s market capitalization stands around $1 billion.

GM shares were worth $3.50 just a month ago and $25.54 a year ago. In the past 12 months alone, the automaker saw its shares drop 93.23 per cent.

CNCB.com reports:

“There is a growing concern among investors that GM shares will eventually be worth $0 because the stock will be diluted if GM successfully converts a sizable chunk of it’s debt into equity stock. Buckingham Research estimates GM’s current 732 Million outstanding shares could balloon to more than 15 billion if GM completes a debt for stock exchange. 15 Billion shares! Would you want to own a 100 or 1000 shares of company with 15 Billion outstanding shares?

Bottom line: A lot investors are starting to wonder if GM stock is worthless.”

The situation leaves a lot of questions unanswered and makes one wonder about any government bailout attempt. If investors are not interested in GM shares, why should taxpayer money be used to help the company?