How General Motors Stock Gained 40%
General Motors (GM)’s stock surged 44%, fueled by a staggering P/E multiple jump, despite slipping revenue and shrinking margins. A mix of missed and beat earnings, tariff relief, strategic shifts in EV, and China supply chain moves all stirred the market—let’s unpack how these forces collided to drive the rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5172025 | 11132025 | Change | |
|---|---|---|---|
| Stock Price ($) | 50.1 | 71.9 | 43.5% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 188,446.0 | 187,435.0 | -0.5% |
| Net Income Margin (%) | 3.1% | 1.6% | -47.3% |
| P/E Multiple | 8.5 | 22.3 | 161.8% |
| Shares Outstanding (Mil) | 988.0 | 944.0 | 4.5% |
| Cumulative Contribution | 43.3% |
So what is happening here? The stock jumped 44%, driven by a massive 162% boost in P/E multiple, despite a slight 0.5% dip in revenue and a 47% drop in net margin. Let’s see what’s behind these shifts.
Here Is Why General Motors Stock Moved
- Q2 Earnings Miss: GM reported Q2 2025 earnings below expectations due to tariff impacts, causing stock to decline.
- Q3 Earnings Beat: Strong Q3 2025 results and raised full-year outlook led to a significant stock surge.
- Tariff Impact Reduced: Lower forecasted tariff impact for 2025 and mitigation efforts boosted investor confidence.
- EV Strategy Adjustments: Production of affordable Bolt EV, but also layoffs and $1.6B charge due to EV demand pullback.
- China Supply Chain Exit: Directive for suppliers to exit China by 2027 for resiliency, long-term positive.
Our Current Assesment Of GM Stock
Opinion: We currently find GM stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell GM Stock to see what drives our current opinion.
Risk: If you want to get a sense of GM’s risk, just check how much it fell in past market shocks. It dropped about 32% during the 2018 correction, 55% in the Covid pandemic crash, and nearly 59% in the recent inflation shock. Even with factors working in its favor, GM’s stock has shown it’s no stranger to steep declines. Market turmoil tends to hit hard, and past selloffs remind us that volatility can be significant, even for big names like GM.
GM stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.