DETROIT — General Motors is set to be the leading automaker stock traded in the U.S. for 2025, with GM shares experiencing their most successful year since the Detroit firm’s rebirth from bankruptcy in 2009.
As of Friday’s closing, GM stock has increased over 55% to a high of more than $80 per share, surpassing the previous annual growth rate of 48.3% from last year. This includes an almost 13% rise thus far in December, contributing to five straight months of gains, as reported by FactSet.
Multiple factors have contributed to the increase in shares. However, GM CEO Mary Barra and other leaders have argued for years that the automaker’s stock has been heavily undervalued considering its stable earnings performance.
“Outstanding vehicles, pioneering technology, an enhanced customer experience, alongside robust financial performance, will keep GM distinguished in an ever more competitive arena,” Barra stated during the company’s last earnings conference in October.
During the surge in stock value, Barra has notably reduced her stake in the company. She has either exercised options or sold approximately 1.8 million shares this year, valued at over $73 million, based on public disclosures verified by GM.
According to the latest public filing from September, Barra still held over 433,500 shares valued at more than $35 million, with a significant portion of her yearly awards allocated in options and stock.
GM’s stock performance stands in contrast to a 17% increase for Tesla as of Friday’s market close, a 34% increase for Ford Motor and a 15% decline for Chrysler’s parent Stellantis. Other U.S.-listed automakers such as Honda Motor and Toyota Motor have recorded more modest yearly increases.
GM’s most recent earnings report triggered a wave of enthusiasm among Wall Street analysts, resulting in reratings and price target adjustments after the third quarter.
The company has consistently exceeded Wall Street’s adjusted earnings per share expectations every quarter except for the second quarter of 2022 over the past five years, based on average analyst forecasts compiled by FactSet.
Analysts have pointed to GM’s cash flow generation, earnings stability, and track record of returning value to shareholders, including stock buybacks, as key reasons for their positive outlook. The manufacturer is also anticipated to benefit significantly from regulatory shifts under the Trump administration, despite ongoing tariffs.
UBS recently raised its 12-month price target for GM stock by 14% to $97 per share, also designating the company as its top pick in the automotive sector heading into 2026. Morgan Stanley also upgraded GM this month to overweight, with a $90 per share target.
“In our perspective, General Motors leads the D3 in both the North American and Global markets with consistent unit sales growth, increases in [average transaction price], prudent incentives spending, and inventory control. This has led to superior [earnings before interest and taxes] margins and returns compared to its competitors,” Morgan Stanley analyst Andrew Percoco stated in a Dec. 7 note to investors.
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GM stock has remained in positive territory cumulatively on a weekly basis since June. The peak weekly increase of 19.3% occurred when the automaker announced its third-quarter earnings on Oct. 21. These results exceeded Wall Street’s forecasts and the company revised its annual guidance upward, stating that the next year’s earnings are projected to surpass those of 2025.
The rise in GM stock has also been assisted by external factors. The Trump administration has eased U.S. fuel economy and emissions regulations, eliminated related penalties set by the Biden administration, and renegotiated its trade agreement with South Korea, a key manufacturing location for GM. At the same time, the industry’s less profitable EV sales have been declining.
“GM operates primarily as a regional (North America) [automaker] and we believe they are well-positioned to capitalize on the relaxed U.S. regulatory landscape (emissions and fuel economy),” UBS analyst Joseph Spak noted in a Dec. 15 investor communication raising the share price target.
GM CFO Paul Jacobson recently stated that the company will keep pursuing stock buybacks.
“As long as the stock remains as undervalued as it currently is, our priority is to repurchase shares. And I believe you’ll continue to witness that from us moving forward,” he mentioned during a UBS investor conference.
Analyst averages compiled by FactSet indicate GM carries an overweight rating with a target price of $80.86.
— Contribution by CNBC’s Michael Bloom has been included in this report.
Correction: Lucid shares have decreased this year. A prior version inaccurately reported their movement.
