If you’re tracking gm stock, you’re not alone. With recent earnings reports, shifting tariff policies, and the push toward electric vehicles, gm stock has become a focal point for both retail and institutional investors. From its latest earnings beat to tariff‑related concerns and its evolving EV roadmap, the General Motors share price is navigating a dynamic landscape that could offer both opportunity and risk.
Earnings — A Mixed Picture for GM Stock
In its Q2 2025 earnings release, General Motors reported an operating profit of $3 billion and adjusted earnings per share (EPS) of $2.53, outpacing analyst estimates of $2.33 EPS (Barron’s, Barron’s). Revenue totaled $47.1 billion, again exceeding expectations (Barron’s).
However, net profit dropped significantly: core profit declined 32–35% year over year (Reuters, AP News, Investopedia). A major drag was a $1.1 billion hit from tariffs on imported vehicles, reflecting nearly half of GM’s U.S. sales that come from Mexico and South Korea (Barron’s). Despite beating expectations, gm stock dropped around 2.4%–3% pre‑market due to investor concerns over margin pressure (Barron’s, Reuters).
Tariff Challenges and Mitigation Strategy
GM forecasts $4–5 billion in tariff-related costs for 2025, with Q2 alone hitting $1.1 billion (MarketWatch). Management aims to offset at least 30% of that through cost discipline, pricing adjustments (0.5–1% hikes), and manufacturing shifts (Investopedia).
These strategies helped rebuild investor trust — though there’s caution around how future tariff dynamics will affect gm stock performance, especially in H2 2025 (Investopedia).
EV Tax Credit Phase‑out: A Headwind for GM Stock
The $7,500 EV tax credit is at risk of expiring in September under current legislation, which may affect EV demand and, in turn, gm stock sentiment (Barron’s). Q2 EV deliveries climbed 111% year‑over‑year, giving GM a 16% U.S. EV share (MarketWatch), but losing the credit could slow down sales momentum and weigh on valuation.
Automotive & EV Business Strategy
ICE Strength and EV Gains
GM’s traditional internal combustion engine (ICE) vehicle sales remain robust, as gas trucks and SUVs helped drive North America profits. However, the EV business is gaining traction: Q2 EV deliveries rose to 46,300 units, a significant jump from 31,900 a year ago (AP News, MarketWatch). GM continues to commit to long‑term carbon‑neutral goals with EV targets, including the Chevrolet Equinox EV and Cadillac Lyriq (Wikipedia).
Battery Ecosystem and Partnerships
GM’s Ultium battery platform and partnerships—for example with LG Energy Solution—are central to its EV cost-efficiency push (Wikipedia). The Ultium Cells plant ramp-up and strategic investments into lithium mining and domestic production are designed to reduce per‑unit costs and support sustainable EV scale (Wikipedia).
Analyst Ratings & Price Targets
Analysts are divided but generally positive on gm stock. Benchmark recently issued a Buy with a $65 target, noting GM’s resilient fundamentals and $20 billion buyback plan (Barron’s). Meanwhile, other platforms point to potential upside of 21–23%, with price targets in the mid‑$50s (DirectorsTalk Interviews).
MarketBeat’s composite score ranks GM in the top percentile among auto stocks, though consensus rating hovers around Hold (8 Buy:9 Hold:4 Sell) (MarketBeat). Technical analysis shows gm stock is trading below its 50‑ and 200‑day moving averages, indicating near-term caution though RSI suggests a neutral setup (DirectorsTalk Interviews).
Shareholder Returns: Dividends & Buybacks
GM offers a 1–1.13% dividend yield and maintains a low payout ratio (~7–8%), enabling potential dividend hikes (MarketBeat). The firm also recently launched a $10 billion share buyback and returned more than $20 billion in capital, signaling confidence in the company’s long‑term value (Barron’s, Reddit).
Risk Factors & Market Headwinds
Tariff Volatility
Tariffs represent a serious short-to-mid term threat to gm stock, with uncertain trade policies potentially increasing cost burdens. While GM can offset a portion, sustained tariff escalation would hurt margins (Reuters, Investopedia).
EV Tax Credit Uncertainty
EV incentives strongly influence purchasing decisions. The possible elimination of the $7,500 credit in September could dent EV sales momentum and pressure stock valuation (Barron’s).
China & Autonomy Retreat
Profit challenges in China persist, prompting restructuring (Reddit, AP News). Additionally, GM scaled back investment in its autonomous vehicle unit Cruise, increasing near-term efficiency but limiting futuristic upside (Reddit).
Investment Outlook: Is gm stock a Buy Now?
For long-term investors, gm stock offers a diversified value proposition:
- Upside potential: Price targets in the low to mid‑$60s represent ~15–25% upside.
- Steady income: Dividend yields plus buybacks offer cash return.
- EV transition play: Strong positioning in EV platforms, batteries, and models.
Short‑term headwinds remain from tariffs, tax credits, and global market pressure. Balancing near‑term caution with a long‑term view on electrification and value returns suggests gm stock may fit well in a balanced portfolio.
Tracking GM Stock: Key Metrics and Catalysts
To stay informed on gm stock, monitor:
- Quarterly earnings: Watch for updated tariff impact estimates and profit guidance.
- Tariff and trade policy updates: Any shifts in trade negotiations could shift cost outlook.
- EV policy changes: Extension or removal of tax credits will directly influence EV sales.
- EV delivery performance and model pipeline: Success of Equinox EV, Lyriq, Silverado EV.
- Technical triggers: Breakouts above 50/200‑day averages or RS upgrades could signal momentum.
