GM stock surged about 19% in the week ending Oct 24, 2025, closing at roughly $69.66 [1], its highest level ever. This jump came after General Motors’ strong third-quarter earnings (EPS of $2.80 vs. $2.31 expected) and upbeat guidance [2] [3]. Management raised full-year profit forecasts (now $12.0–13.0 billion EBIT vs. $10.0–12.5B prior) and lowered projected tariff costs to $3.5–4.5 billion [4] [5]. Analysts have responded positively: TD Cowen raised its 12-month price target to $100 (with a “Buy” rating) [6], and others like Wedbush and Citigroup lifted targets to ~$75 [7]. GM also announced a Q4 dividend and continues large share buybacks (about $16 billion authorized since 2023) [8]. The stock rally reflects not just GM’s results but a broader industry boost – rival Ford jumped ~16% on the week [9], and Tesla’s shares have also been volatile amid the EV race.
Market Reaction
Investors greeted GM’s earnings news with enthusiasm. After closing around $58 on Oct 20, GM’s stock jumped nearly 15% on Oct 21 (to about $66.62) when markets opened, then edged higher through the week, finishing at $69.66 on Oct 24 [10]. That one-week gain (+19.3%) outpaced Ford’s +16.1% rise [11] [12] and marked GM’s best weekly performance in years. Wall Street’s optimism was fueled by the earnings beat and new guidance. A GM Authority summary noted that “raised annual guidance on the back of better-than-expected Q3 earnings” was the number-one factor behind the stock surge [13]. In short, the market is signaling confidence that GM’s turnaround efforts (strong sales, higher profit guidance, lower tariff exposure) will continue.
Even the White House weighed in: former President Trump took credit for tariffs on trucks, tweeting that GM and Ford executives thanked him because “their companies’ stock has soared” [14]. (U.S. tariffs on imports of mid- and heavy-duty trucks and engines – boosted by new 25% levies set to start in November – reduce foreign competition.) These policy moves were widely viewed as indirectly aiding GM’s profitability, since GM plans to re-shore production of some trucks [15] [16].
Strong Q3 Earnings and Upbeat Guidance
GM’s third-quarter results on Oct 21 surprised many analysts. The company reported adjusted EPS of $2.80 on $48.6 billion in revenue, beating consensus estimates ($2.31 EPS expected) [17] [18]. U.S. light-vehicle sales grew ~6% in Q3 [19], and GM’s market share in key segments (trucks, crossovers, SUVs) was its strongest in years [20] [21]. Free cash flow was also strong, according to GM’s CEO Mary Barra [22].
Importantly, GM raised its full-year outlook. It now expects $12.0–13.0 billion in core operating profit (EBIT) versus $10.0–12.5 billion before [23]. Adjusted earnings per share are now guided to about $9.75–10.00 (versus $8.25–10.00 prior) [24]. Tariff costs were revised down – GM now sees $3.5–4.5 billion of drag, thanks to shifting production back to the U.S. and expanded tariff credits [25] [26]. In a shareholder letter, Barra said GM “delivered another very good quarter of earnings and free cash flow,” and added that the company is raising our full-year guidance based on that performance [27]. Company statements also reiterated that 2026 sales should be “even better than 2025,” buoyed by new products and technologies [28].
However, one note of caution: GM took a $1.6 billion charge in Q3 to scale back EV capacity, citing the loss of federal tax credits and looser emissions rules [29]. GM warned that near-term EV demand would be lower than previously expected [30] [31]. CEO Barra indicated EVs remain a long-term “North Star,” but acknowledged adjustments: “It is now clear that near-term EV adoption will be lower than planned,” she said [32]. The company is slowing expansion of EV projects to avoid oversupply [33]. At the same time, GM’s CFO Paul Jacobson assured investors that “the customers want EVs” and said he will “continue to focus on improving EV profitability” even as credit incentives fade [34].
Analysts Weigh In
After the earnings rally, analysts remained generally bullish on GM. Research reports highlighted the strong truck demand and tariff relief. For example, TD Cowen upped its price target from $92 to $100 and kept a “Buy” rating, noting the recent $2.80 EPS and robust revenue, and implying roughly 49% upside from current prices [35]. Wedbush also boosted its 12-month target to $75 (Outperform) and Citigroup raised its target to $75 (Buy) [36]. On MarketBeat’s summary, GM’s consensus was “Moderate Buy” with an average target near $68 (a few percent above Friday’s close) [37].
Other analysts praised GM’s turnaround. A Morningstar note (Dow Jones) said investors are cheering GM for “lower costs, solid sales, and reassuring guidance.” (We couldn’t quote that directly, but Reuters reported GM’s stock on track for “best day in nearly six years” after the results [38].) Of course, not everyone is exuberant: some see $69-$70 as fairly valued given higher EV uncertainty and overall auto market cycles. Yet the majority view – that GM’s new strategy (more U.S. trucks, disciplined EV rollout, cost cuts) will pay off – is reflected in those higher targets and buy ratings.
Electric Vehicles and Competition
Electric vehicles remain a double-edged sword for GM. On one hand, GM doubled its EV sales in the first nine months of 2025 versus a year ago [39], and achieved about 16.5% share of U.S. EV sales in Q3 (still behind Tesla) [40]. The company even said EV sales have more than doubled year-to-date from 2024 [41]. New models like the Chevy Equinox EV and Cadillac Lyriq are selling well, and GM continues to invest (e.g. $7 billion in U.S. factory upgrades and new battery plants) [42]. GM also previewed exciting tech: at its GM Forward event this week it teased “eyes-off” highway driving in a 2028 Cadillac Escalade IQ EV, in-vehicle Google AI chatbot, and more efficient onboard computers [43].
On the other hand, the abrupt end of the $7,500 federal EV tax credit on Sept 30, and looser fuel economy mandates, means GM sees less near-term demand. As InsideEVs reported, GM expects “the adoption rate of EVs to slow,” leading it to take a $1.2B impairment and $400M other charges related to unused batteries and canceled projects [44]. Mary Barra said consumers will delay EV purchases without incentives [45]. This pivot to profitability over sheer volume is echoed by GM’s focus on reducing EV losses and leveraging larger battery modules, as management stated [46].
Meanwhile, GM’s core business – traditional trucks and SUVs – remains its cash cow. Barra emphasized that “ICE volumes will remain higher for longer,” pointing to rising sales of Silverado, Sierra, Escalade and other gas vehicles [47]. Indeed, GM claims it will lead full-size pickup sales for the sixth straight year, and has held the full-size SUV crown for 50+ years [48]. Competition is heating up: Ford is likewise pushing hybrids and EV trucks, Stellantis (Jeep/Ram) is growing, and Tesla continues cutting prices on sedans and trucks. But GM’s strategy leans on its strength in heavy trucks and returning to profitability on EVs.
Broader Auto Market and Economy
General Motors’ performance fits a broader pattern of consumer resilience. Wall Street analysts note that “upscale consumers” have kept spending even as lower-income buyers pull back [49]. Reuters reported that Coca-Cola, 3M and GM all saw robust sales to wealthier customers, offsetting weakness elsewhere [50]. U.S. new-car sales grew about 6% in Q3 [51], driven by pricier trucks and SUVs (average new car price hit a record ~$50,000 in September) [52]. That helped GM’s volumes, since its mix is heavy on profitable trucks and luxury models [53].
Macroeconomic headwinds are modest for automakers right now. Inflation is easing and interest rates have been largely unchanged this fall, meaning financing costs for buyers are steady. Gas prices have fallen from summer peaks, which usually helps SUV sales. However, labor and supply issues persist: tariffs on China (and the recent U.S. 25% truck tariffs) add costs to imports. GM has been shifting some production back to the U.S. to mitigate tariffs [54] [55], which it says will save at least $1.2 billion in tariff costs. Ironically, Canada announced new limits on tariff-free U.S. vehicle imports (cutting GM’s quota 24% because of its reduced Canadian output) [56] – another factor GM will have to navigate.
On the labor front, the recent UAW contracts (ratified in late 2023) ended last year’s strikes and locked in higher wages and benefits. GM is now bearing about $7 billion in additional labor and pension costs from those deals (Reuters estimated this) [57], but no new strikes are expected until the contract expires. Higher labor costs could temper margins, though GM already built that into its forecasts.
Forecast and Outlook
Looking ahead, analysts generally see more upside for GM but with some caveats. The median 12-month target from analysts is in the $70–75 range, implying a modest gain from today’s levels; a few optimistic forecasts (like Cowen’s) are much higher [58]. The consensus “Moderate Buy” rating suggests many experts believe the stock still has room to grow as earnings ramp up.
GM’s own guidance hints at higher earnings in 2026 than 2025 [59], driven by higher sales and the relief from tariffs. If the global economy keeps chugging along, GM could exceed current estimates. However, risks remain: EV sales could fall further without incentives, interest rates might rise again (cooling car buying), and supply disruptions (like chip shortages or China tensions) could intrude. One analyst warned that GM’s results “could be hampered by supply chain disruptions, additional EV charges and increased warranty costs” [60].
In sum, General Motors is on a strong footing after its latest results. It has diversified revenue streams – trucks, EVs, software services (OnStar/SuperCruise) – and is aggressively returning value (dividends and buybacks [61]). As analyst Larry Avila wrote, GM’s focus on cost cuts (tariffs, EV losses, and manufacturing) aims to restore historic 8–10% profit margins [62] [63]. For investors, the key questions will be: can GM maintain sales momentum, and can its EV pivot succeed?
With the stock near all-time highs, some worry it may be priced for perfection. But others point out that GM’s long-term trajectory is improving: China sales are rebounding (+10% in Q3 [64]), U.S. truck production is expanding (Orion plant and Orion Township retooling), and new technology initiatives (autonomy, AI) could open future growth. As one market strategist noted, affluent consumers “still have buying power” [65], which bodes well for GM’s premium models.
Bottom line: The recent earnings-driven rally reflects a winning quarter and renewed investor faith. If GM can execute its plans – increasing domestic output, cutting costs, and gradually building profitable EV sales – analysts’ forecasts of higher earnings and a rising stock price may well come true. But any slip in the economic or policy environment (e.g. auto financing rates, trade disputes) could cool the enthusiasm.
Sources: Company reports and news releases [66] [67]; financial news and analysis by Reuters [68] [69] [70], GM Authority [71] [72], Motley Fool/Nasdaq [73], WardsAuto [74] [75], MarketBeat [76], InsideEVs [77], and others cited above.
References
1. gmauthority.com, 2. www.reuters.com, 3. news.gm.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.marketbeat.com, 7. www.marketbeat.com, 8. www.nasdaq.com, 9. gmauthority.com, 10. www.investing.com, 11. gmauthority.com, 12. gmauthority.com, 13. gmauthority.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.wardsauto.com, 17. www.reuters.com, 18. www.nasdaq.com, 19. www.reuters.com, 20. www.nasdaq.com, 21. news.gm.com, 22. news.gm.com, 23. www.reuters.com, 24. gmauthority.com, 25. www.reuters.com, 26. www.reuters.com, 27. news.gm.com, 28. news.gm.com, 29. insideevs.com, 30. www.reuters.com, 31. insideevs.com, 32. www.reuters.com, 33. insideevs.com, 34. www.wardsauto.com, 35. www.marketbeat.com, 36. www.marketbeat.com, 37. www.marketbeat.com, 38. www.reuters.com, 39. news.gm.com, 40. insideevs.com, 41. news.gm.com, 42. gmauthority.com, 43. news.gm.com, 44. insideevs.com, 45. www.reuters.com, 46. www.wardsauto.com, 47. www.wardsauto.com, 48. news.gm.com, 49. www.reuters.com, 50. www.reuters.com, 51. www.reuters.com, 52. www.reuters.com, 53. news.gm.com, 54. www.reuters.com, 55. www.wardsauto.com, 56. www.reuters.com, 57. www.reuters.com, 58. www.marketbeat.com, 59. news.gm.com, 60. www.reuters.com, 61. www.nasdaq.com, 62. www.wardsauto.com, 63. www.wardsauto.com, 64. www.nasdaq.com, 65. www.reuters.com, 66. news.gm.com, 67. news.gm.com, 68. www.reuters.com, 69. www.reuters.com, 70. www.reuters.com, 71. gmauthority.com, 72. gmauthority.com, 73. www.nasdaq.com, 74. www.wardsauto.com, 75. www.wardsauto.com, 76. www.marketbeat.com, 77. insideevs.com
