How Investors Are Reacting To General Motors (GM) Extending EV Lease Credits and Posting Record Q3 Sales

• In recent weeks, General Motors extended the US$7,500 federal tax credit for electric vehicle leases through its financing arm after the official expiration, and reported record vehicle sales growth in both electric and gas-powered segments for Q3 2025.
• This move underscores GM’s ability to temporarily sustain electric vehicle demand despite the loss of direct consumer incentives, highlighting the company’s operational agility in the face of shifting market subsidies.
• We will examine how GM’s innovative approach to preserving EV incentives might impact its investment narrative and long-term growth prospects.

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General Motors Investment Narrative Recap

To be a General Motors shareholder today, you need to believe in the company’s ability to transition profitably to electric vehicles while still navigating intense pricing pressure and regulatory headwinds. The extension of the US$7,500 EV lease credit has helped cushion short-term demand risks, but the biggest catalyst for GM remains scaling affordable EVs; meanwhile, persistent trade tariffs and the full removal of tax credits still pose significant threats to margin recovery and volume growth. The impact of this latest incentive extension is likely temporary and does not fundamentally shift these dynamics.

Among recent announcements, GM’s record Q3 2025 EV sales, over 66,500 deliveries, stand out in the context of the expiring federal tax credit. This surge, largely driven by an incentives-driven rush, highlights both the importance of subsidies for EV sales momentum and the company’s short-term ability to offset some regulatory challenges, but maintaining this momentum without policy support remains uncertain. Yet, for investors, the effect of these incentives could fade quickly as consumer affordability changes and competition heats up.

But in contrast, there is an important consideration around how losing access to federal EV subsidies exposes GM to risks that investors should not overlook…

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

General Motors is forecast to generate $185.3 billion in revenue and $8.0 billion in earnings by 2028. This projection assumes revenues will decline by 0.4% annually and that earnings will rise by $1.5 billion from current earnings of $6.5 billion.

Uncover how General Motors' forecasts yield a $61.36 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set GM’s fair value between US$38.81 and US$117.80, across 12 unique estimates. Trade tariffs costing US$4–5 billion a year may challenge even the most optimistic forecasts, so check several viewpoints before deciding.

Explore 12 other fair value estimates on General Motors - why the stock might be worth 35% less 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 3 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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