General Motors (GM): Valuation Insights Following Extended Tariff Relief and U.S. Manufacturing Expansion

General Motors (GM) shares have caught extra attention following the Trump administration's decision to extend tariff relief options for automakers. The extension eases cost pressures and encourages more investment in U.S. manufacturing capacity.

See our latest analysis for General Motors.

GM's share price has rallied an impressive 28% over the past month alone, fueled by tariff relief and fresh investment in U.S. plants. Recent headlines, including a major class action lawsuit and new model launches, remind investors of ongoing opportunities and challenges. Despite a few bumps in the road, the momentum is clearly building, as shown by the 24.5% total shareholder return over the last year and a robust 83.6% over three years.

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With shares soaring and headlines buzzing about new investments and strategic shifts, the key question for investors is whether GM is still undervalued or if recent gains already reflect expectations for future growth.

Most Popular Narrative: 2.9% Undervalued

With General Motors last closing at $71.05 and the most popular narrative estimating fair value at $73.15, today's price remains a touch below the consensus. Investor focus now shifts to the drivers and assumptions behind this outlook.

GM's rapid expansion of its electric vehicle (EV) portfolio, especially through crossover success, luxury Cadillac EV leadership, and affordable models like the Equinox EV, positions the company to gain market share and drive revenue growth as global electrification accelerates and consumer demand recovers.

Read the complete narrative.

How does Wall Street compute that price target? There is a bold bet on transforming revenue streams and ramping up high-tech offerings, but the exact payout hinges on key future milestones. Wondering how these future projections stack up? The full narrative pulls back the curtain on the company’s potential profit power and the assumptions behind its current price.

Result: Fair Value of $73.15 (UNDERVALUED)

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

However, ongoing uncertainty around tariffs and slower than expected EV adoption could still threaten GM’s pricing power and long-term margin strength.

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

Build Your Own General Motors Narrative

Prefer a hands-on approach or have your own viewpoint? Dive in and build your own perspective on GM in just a few 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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