Did GM’s (GM) Supply Shift and EV Gains Just Reshape Its Investment Narrative?

• In the third quarter of 2025, General Motors reported an 8% year-over-year increase in vehicle deliveries, lifted its full-year outlook, and highlighted gains across its truck, SUV, and electric vehicle segments, while also instructing suppliers to phase out sourcing from China by 2027.
• Rising OnStar fleet subscriptions, expanding digital services, and the pursuit of a North American supply chain reveal GM’s emphasis on recurring revenue and long-term resilience.
• We will explore how GM’s North American supply chain shift and electrification growth influence the company’s investment narrative and industry outlook.

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General Motors Investment Narrative Recap

To be a shareholder in General Motors today, you need to believe in the company’s ability to offset ongoing supply chain challenges and capitalize on the electrification and digital services transition. The latest quarter’s vehicle delivery growth and improved outlook could underpin sentiment, but the most important short-term catalyst, growing recurring revenue from services, appears unaffected, while persistent headwinds from tariffs and reliability concerns remain the biggest risks for now.

Among recent announcements, the surge in active OnStar fleet subscriptions, up over 50% year over year, directly connects to GM’s push for higher-margin, recurring revenue. This momentum in digital services is significant as investors weigh software and value-added offerings against pressures facing traditional vehicle sales.

However, investors should be especially mindful of ongoing risks tied to trade policies and tariff-driven margin pressures if...

Read the full narrative on General Motors (it's free!)

General Motors is projected to have $185.3 billion in revenue and $8.0 billion in earnings by 2028. This outlook assumes a 0.4% annual revenue decline and a $1.5 billion increase in earnings from the current $6.5 billion level.

Uncover how General Motors' forecasts yield a $73.15 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Eight individual investors in the Simply Wall St Community estimate GM’s fair value between US$41.79 and US$96.83 per share. While many see upside, ongoing trade-related cost headwinds present a major hurdle for consistent margin improvement. Explore alternative opinions to round out your own view.

Explore 8 other fair value estimates on General Motors - why the stock might be worth as much as 38% more than the current price!

Build Your Own General Motors Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Motors research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free General Motors research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Motors' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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