Key Stats for General Motors Stock
- Current Price: $78.05
- Target Price (Mid): ~$86
- Street Target: ~$94
- Potential Total Return: ~10%
- Annualized IRR: ~2% / year
- Earnings Reaction: (1.71%) on January 27, 2026
- Max Drawdown: (16.20%) on March 13, 2026
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What Happened?
General Motors (GM) stock has risen about 65% over the past year, from around $47 to $78.05, sitting within 11% of its 52-week high of $87.62.
That run reflects genuine operational progress: a decade-high U.S. market share, tight inventory discipline, and nearly $25 billion in free cash flow generation over the past two years. But the stock fell 4% this week, and three days of calendar risk explain why.
GM reports Q1 2026 earnings on April 28, with analysts expecting EPS to decline roughly 7% to $2.59 and revenue to slip about 1% to $43.67 billion, as tariff costs and softer vehicle sales pressure the quarter.
The selloff this week was driven partly by reports that executive bonuses were unaffected by tariff losses, and by confirmation that GM is delaying its next-generation all-electric truck program.
That EV delay is more than a headline. GM has quietly halted its next-generation electric truck program at Factory Zero in Detroit, refocusing capital toward gasoline engines and hybrids, a meaningful strategic shift for a company that spent years positioning itself as the most EV-committed legacy automaker.
On the January 27 earnings call, CEO Mary Barra confirmed the pivot, stating that GM has a strong ICE portfolio, is introducing hybrids in key segments, and has the flexibility to meet evolving consumer demand.
CFO Paul Jacobson added that market share gains of 60 basis points in 2025, combined with disciplined inventory management, contributed to nearly $25 billion in free cash flow over the past two years.
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Is General Motors Undervalued Today?
GM’s valuation looks low on the surface. The stock trades at 6.37x forward earnings and 7.27x NTM EV/EBITDA, with 26 analysts maintaining an average price target of around $94, implying roughly 20% upside from today. But the discount reflects genuine uncertainty, not oversight.
GM projects gross tariff costs of roughly $3 to $4 billion for full-year 2026, with a Q1 hit alone of $750 million to $1 billion. Deutsche Bank estimates tariffs will reduce Q1 EBIT by around $800 million, partly offset by roughly $400 million in EV loss improvements, $250 million in warranty savings, and $200 million in emissions benefits.
The net effect still puts Q1 earnings below the prior year, which explains the soft consensus.
The EV retreat adds a longer-term question. GM absorbed $7.6 billion in EV-related restructuring charges in 2025 to rightsize its manufacturing footprint, and pausing the next-gen electric truck program signals that cash flow preservation is now the priority over electrification timelines. That is a defensible call given current consumer demand, but it removes the EV growth premium that was once part of the investment case.
On a peer basis, GM’s NTM EV/EBITDA of 7.27x sits below BMW’s 8.09x and roughly in line with Volkswagen’s 7.02x. Stellantis trades at just 3.45x, reflecting far deeper operational problems.
The gap between GM and BMW is modest, but given that GM’s North American truck and SUV franchise produces significantly more stable cash flow than BMW’s European mix, the discount is worth noting as tariff clarity improves.
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TIKR Advanced Model Analysis
- Current Price: $78.05
- Target Price (Mid): ~$86
- Potential Total Return: ~10%
- Annualized IRR: ~2% / year
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The TIKR mid-case model targets around $86 by December 31, 2030, implying roughly 10% total return and about 2% annualized IRR. The model assumes around 2% annual revenue CAGR through 2030, conservative relative to GM’s five-year historical revenue CAGR of 8.6%, and a mid-case net income margin of around 6%.
Two revenue drivers underpin that assumption. North American truck and SUV pricing discipline, where GM has held full-size pickup market share while running dealer incentives well below the industry average, protects profit margins even in a flat-volume environment. GM Financial, the captive auto lending arm that contributed $17.06 billion in segment revenue in 2025, provides a recurring earnings stream tied to the vehicle install base rather than new-unit volume.
The margin driver is EV loss reduction. Management guided for a $1 billion to $1.5 billion benefit from rightsizing EV capacity, and EV gross margins turned variable-profit-positive for the first time in Q4 2025. The primary risk is tariffs running above the $3 to $4 billion guided range, which would compress free cash flow margins and slow the buyback program. The mid-case target of ~$86 is not far above the current price of $78.05, so investors are not getting a wide margin of safety on the 2030 horizon at these levels.
Conclusion
Watch adjusted EBIT and full-year guidance on April 28. Management guided full-year 2026 adjusted EBIT to $13 to $15 billion. If Q1 results keep that range intact, the stock has a credible path back toward its 52-week high. If guidance is narrowed downward, the support range around $72 to $74 comes into focus.
GM is generating cash well above its historical baseline, and the April 28 report is the next test of whether the valuation gap to peers begins to close.
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Should You Invest in General Motors?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up General Motors, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track General Motors alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
