What Is Happening With General Motors Stock?
General Motors (GM)’s stock leapt 63%, fueled not by revenue or margins, but by 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 refocused on personal AVs, integrating tech, and aiming for over $1B in annual savings from mid-2025.
- Regulatory Changes: Favorable U.S. policy changes, like reduced emissions rules, are expected to save $500M-$750M in 2026.
Our Current Assessment 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 sell-offs 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.