Key Stats for GM Stock
- Past-30-Day Performance: -11%
- 52-Week Range: $42 to $88
- Valuation Model Target Price: $85
- Implied Upside: 16%
Analyze your favorite stocks like General Motors Company with TIKR (It’s free) >>>
What Happened?
General Motors stock fell about 11% over the past 30 days, recently trading near $73 per share as investor sentiment has shifted more cautious amid slowing electric vehicle adoption, rising pricing pressure, and increasing competition across the global auto industry.
The stock moved lower over the past month primarily because investors are pricing in weaker margins as EV demand growth slows while pricing competition intensifies, forcing GM to absorb higher production costs without fully offsetting them through pricing.
This pressure is being reinforced by competitors like Ford Motor Company and Tesla, Inc., which have both adjusted pricing and production more aggressively, while Stellantis N.V. has focused on tighter cost control, highlighting how competitive dynamics are becoming more challenging across the sector.
This week at Bank of America’s Global Automotive Summit, CFO Paul Jacobson pointed to a key offset in GM’s growing digital business.
The company’s OnStar platform, which generates recurring subscription revenue from connected services like safety features, navigation, and remote vehicle access, now serves about 12 million customers and is expected to reach 13 million subscribers, alongside nearly $7.5 billion in deferred revenue and $3 billion in recognized revenue in 2026.
He added that more than 50% of paying customers are upgrading to premium packages and that Super Cruise, GM’s hands-free highway driving system, is seeing renewal rates of 30% to 40%, noting that demand trends remain stable with February on track and March “looking good.”
Recent analyst sentiment has remained cautious, with analysts largely maintaining neutral ratings without raising price targets, reflecting limited near-term catalysts as the market waits for clearer visibility on EV profitability and margin recovery.
Recent institutional filings also showed a mixed picture, with Ameriprise Financial increasing its stake to about 6.0 million shares worth roughly $366 million and Bank of Nova Scotia raising its position by 95%, while funds like Junto Capital and Aquatic Capital significantly reduced their holdings.
With institutional ownership still near 92.67%, investors appear to be holding positions but becoming more selective, which aligns with the stock’s recent pullback.
Value General Motors Company instantly (Free with TIKR) >>>
Is GM Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 1.2%
- Operating Margins: 7.9%
- Exit P/E Multiple: 5.5x
GM’s modest growth outlook reflects a mature auto business where unit expansion is limited, and performance is driven more by pricing discipline, product mix, and replacement demand than by rapid growth.
See analysts’ growth forecasts and price targets for General Motors Company (It’s free) >>>
What matters most is whether the company can improve profitability over time. The shift toward higher-margin revenue streams such as software, subscriptions, and connected services through OnStar has the potential to gradually lift margins, especially as deferred revenue converts into higher-margin recognized earnings.
EV execution remains the key swing factor. Lower battery costs, improved production efficiency, and better pricing discipline would directly improve margins and could lead to a re-rating in the stock.
At the same time, strong demand for trucks and SUVs in North America continues to support core earnings, providing stability while GM transitions toward electric and software-driven vehicles.
Based on these inputs, the model estimates a target price of about $85, implying roughly 16% upside over the next few years, indicating the stock appears modestly undervalued at current levels, with future performance driven by margin recovery, digital revenue growth, and improved EV economics.
How Much Upside Does GM Stock Have From Here?
Investors can estimate General Motors Company potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
Value General Motors Company in under 60 seconds with TIKR (It’s free) >>>
