General Motors (GM) Stock Forecast & Price Target

General Motors is supported by durable pricing power, disciplined cost execution, and improving warranty and commodity trends, as reflected in its raised '26 Adj. EBIT guidance by $500M to $14-16B and an estimated $15.2B midpoint. Its outlook is further strengthened by dominant exposure to highly profitable U.S. trucks and SUVs, 2025 U.S. share of 17.4%, and a potential tariff benefit that could reduce its roughly $3B gross tariff burden by about $500M if US-Mexico tariffs fall to 15%. Beyond legacy autos, high-margin growth engines like OnStar, Super Cruise, energy storage, GM Defense, and GM Insurance could expand margins and support a multiple re-rating.

General Motors is viewed negatively because its earnings remain exposed to a highly cyclical auto market, where weaker employment, higher rates, or softer consumer confidence can quickly दबlower profits and cash flow. Its near-term cost picture is also deteriorating, with -$1,150M from higher commodity inflation/DRAM and -$850M from higher US onshoring costs outweighing benefits from EV rightsizing and warranty savings, while lower CAFE credits add further pressure. The outlook is additionally constrained by execution risk in EVs and AVs, especially since “GM Tech” profitability is far out and the downside case assumes 2026E or 2027E Auto EPS about 25% below base case with only a ~4x P/E multiple.