Electric Vehicles And Battery Production Will Fuel Future Success

General Motors’ consensus price target has increased as analysts highlight improving North American margin prospects, effective cost-offset strategies, potential tariff relief from international agreements, and upside from easing EV regulations, partially offset by near-term demand and competitive concerns, resulting in a new fair value estimate of $61.36.

Analyst Commentary

• Bullish analysts cite strong prospects for margin recovery in GM North America, as well as resilience in U.S. vehicle production and pricing despite ongoing tariffs, with several raising earnings estimates well above consensus.
• Some analysts highlight GM’s ability to offset tariff and input cost headwinds through production relocation, logistics strategies, and a variety of operational levers.
• Positive views reflect expectations of further upside from easing EV regulations, narrowing EV unit losses, attractive valuation, U.S. capex cycles, and benefits from potential U.S. interest rate cuts.
• Elevated confidence stems from increased visibility on trade agreements (notably with South Korea), which are expected to reduce GM’s tariff exposure by hundreds of millions of dollars.
• Bearish analysts raise concerns about near-term pricing pressure, uncertainty in the second half of 2025, potential competitive risks from Japanese OEMs benefiting from lower U.S. tariffs, and the expiration of IRA credits impacting EV affordability and demand.

What's in the News

• Honda has decided to cancel all future U.S. production of its Acura ZDX electric crossover, which was assembled by GM in Tennessee, due to weak EV market conditions (CNBC).
• GM will halt and temporarily reduce output of electric Cadillac SUVs at its Spring Hill, Tennessee plant amid slowing EV demand, laying off one shift of workers for several months (Reuters).
• Amazon is piloting GM’s BrightDrop electric vans in its fleet as part of its goal to deploy 100,000 electric delivery vehicles by 2030, impacting shares of Rivian, another Amazon EV partner (Bloomberg).
• GM is in early talks with China’s SAIC Motor to renew their joint venture, with discussions focused on future products and plant involvement (Bloomberg).
• The Trump administration is proposing regulatory changes to ease deployment of self-driving vehicles, a move expected to benefit GM and other automakers active in autonomous technology (Bloomberg).

Valuation Changes

Summary of Valuation Changes for General Motors

• The Consensus Analyst Price Target has risen from $58.28 to $61.36.
• The Consensus Revenue Growth forecasts for General Motors has significantly risen from -0.4% per annum to -0.3% per annum.
• The Net Profit Margin for General Motors has risen slightly from 4.34% to 4.50%.