What Is Happening With General Motors Stock?
General Motors (GM)’s stock leapt 63%, fueled not by revenue or margins, but a stunning 177% surge in its P/E multiple. What’s driving this investor frenzy? A bold EV pivot, strong core business, and autonomous driving bets—all against a backdrop of shifting regulations and a revealing Q4 outlook.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 7312025 | 1272026 | Change | |
|---|---|---|---|
| Stock Price ($) | 53.1 | 86.4 | 62.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 187,600.0 | 185,019.0 | -1.4% |
| Net Income Margin (%) | 2.5% | 1.5% | -42.7% |
| P/E Multiple | 10.7 | 29.6 | 176.7% |
| Shares Outstanding (Mil) | 963.0 | 925.0 | 4.1% |
| Cumulative Contribution | 62.7% |
So what is happening here? The stock jumped 63%, driven by a 177% surge in its P/E multiple, despite revenue dipping 1.4% and net margin shrinking 43%. Let’s see what’s behind these shifts.
Here Is Why General Motors Stock Moved
- Q4 Earnings & Outlook: Strong Q4 2025 EPS beat, $6B buyback, 20% dividend increase, and upbeat 2026 guidance.
- EV Strategy Shift: Over $7.2B in Q3/Q4 2025 charges for EV capacity realignment due to slowing demand and policy changes.
- Core Business Strength: Maintained U.S. market leadership with strong sales of pickups and SUVs; highest share in a decade.
- Autonomous Driving: Cruise re-focused to personal AVs, integrating tech, aiming for over $1B annual savings from mid-2025.
- Regulatory Changes: Favorable U.S. policy changes, like reduced emissions rules, expected to save $500M-$750M in 2026.
Our Current Assesment Of GM Stock
Opinion: We currently find GM stock risky. 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.