GM’s record stock performance beats Tesla, Ford in 2025
General Motors CEO Mary Barra at the annual Allen and Co. event held at Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025. Attended the Sun Valley Media and Technology Conference.
David A. Grogan | CNBC
DETROIT — General Engines GM shares are on track to be the largest U.S.-traded automaker stock by 2025 as the Detroit company has its best year since its reemergence from bankruptcy in 2009.
GM shares rose more than 55% to a record above $80 per share as of Friday’s close, outpacing the company’s previous annual gain of 48.3% last year. That includes a nearly 13% gain so far in December, adding to five straight months of stock gains, according to FactSet.
There are many factors that trigger the stock increase. But GM CEO Mary Barra and other executives have argued for years that the automaker’s shares are significantly undervalued given its steady earnings performance.
“Great vehicles, innovative technology, a rewarding customer experience and strong financial results will continue to distinguish GM in an increasingly competitive environment,” Barra said in the company’s last quarterly earnings call in October.
Amid the stock rally, Barra significantly reduced his position in the company. He exercised options or sold about 1.8 million shares worth more than $73 million this year, according to public records confirmed by GM.
As of the last public filing in September, Barra still owned more than 433,500 shares worth more than $35 million, and most of his annual awards were granted in options and stock.
GM’s stock performance compares with a 17% annual increase Tesla’s A 34% increase as of Friday close Ford Motor and a 15% loss for Chrysler’s parent company. Stellantis. Other automakers listed in the US honda engine And Toyota Motor had smaller annual earnings.
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GM’s latest quarterly earnings were a major catalyst for Wall Street analysts’ bullish sentiment, which led to re-ratings and price target increases after the third quarter.
The automaker’s quarterly adjusted earnings per share have topped Wall Street estimates in every quarter over the past five years except the second quarter of 2022, according to the average expectations of analysts compiled by FactSet.
Wall Street analysts generally cited GM’s cash generation, earnings flexibility and performance in generating shareholder returns, including stock buybacks, as reasons for optimism. The automaker is also expected to benefit greatly from regulatory changes under the Trump administration despite ongoing tariffs.
UBS recently raised its 12-month price target for GM stock by 14% to $97 per share, while pegging the company as a top auto pick heading into 2026. Morgan Stanley also upgraded GM to overweight earlier this month with a price target of $90 per share.
“In our view, General Motors leads D3 in the North American and Global market with steady sales growth, [average transaction price] growth, disciplined incentive spending and inventory management. This worked better [earnings before interest and taxes] Margin and return metrics are better than peers, Morgan Stanley analyst Andrew Percoco said in a Dec. 7 investor note.
GM shares have been in the black cumulatively on a weekly basis since June. The biggest weekly gain, 19.3%, came when the automaker reported third-quarter earnings on Oct. 21. Those results beat Wall Street’s expectations, and the company raised its annual forecast, adding that next year’s earnings are expected to be better than 2025.
GM shares also saw an increase due to some external factors. The Trump administration relaxed U.S. fuel economy and emissions standards, eliminated related penalties imposed under the Biden administration and renegotiated the trade agreement with South Korea, a major manufacturing hub for GM. Meanwhile, the industry is seeing a slowdown in less profitable EV sales.
“GM is effectively a regional (NA) [automaker] We believe they are well positioned to benefit from the relaxed U.S. regulatory environment (emissions and fuel economy),” UBS analyst Joseph Spak said in a Dec. 15 investor note that boosted the per-share price.
GM CFO Paul Jacobson said earlier this month that the company would continue stock buybacks.
“As long as the stock remains this undervalued, the priority is to buy back shares. And I think you’ll continue to see that from us going forward,” he said at the UBS investor conference.
According to analyst averages compiled by FactSet, GM is rated overweight with a target price of $80.86.
— CNBC’s michael bloom contributed to this report.
Correction: Lucid shares have been down for the year. An earlier version misstated his moves.
