General Motors (GM): Reassessing Valuation After Strategic Pivot to V8 Engines and Tech Leadership Shake-Up

General Motors (GM) is back in the spotlight as it pivots away from money losing EV bets, doubles down on next generation V8 engines, and reshapes its tech leadership to tighten execution.

See our latest analysis for General Motors.

The market seems to like this back to basics reset, with a roughly 27 percent 3 month share price return and a near 39 percent 1 year total shareholder return pointing to building momentum rather than a one week pop.

If GM’s pivot has you rethinking the whole auto space, it is a good moment to scan other manufacturers and see how they stack up using auto manufacturers.

After a 50 percent plus rally and shares brushing up against near term price targets, investors now face a tougher call: is GM still trading at a meaningful discount, or is the market already baking in the next leg of growth?

Most Popular Narrative Narrative: 1% Undervalued

With General Motors last closing at $73.66 against a fair value narrative of $74.15, the story implies only a modest upside but a meaningful shift in how earnings power is viewed.

Favorable industry trends, such as lower-than-expected tariff impacts and positive onshoring developments, are seen as enhancing GM's long-term outlook and supporting a higher risk/reward profile.

Recent upgrades cite solid market share gains in both ICE and EV businesses, as well as the company's ability to navigate sector-specific headwinds, including tariffs and evolving electric vehicle regulations.

Read the complete narrative.

Want to see what is really driving that upgraded fair value, and why earnings, margins, and future multiples look very different from GM’s past playbook? Dive into the full narrative to unpack the numbers behind this reset.

Result: Fair Value of $74.15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff headwinds and slower than expected EV adoption could quickly erode those margin gains and challenge today’s upgraded valuation narrative.

Find out about the key risks to this General Motors narrative.

Build Your Own General Motors Narrative

If the story here does not quite match your view, put the numbers to work yourself and build a custom narrative in minutes, Do it your way.

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.

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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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