General Motors (GM) is staying ahead of the EV curve and is successfully navigating the macro headwinds into 2026 by pivoting their manufacturing focus back to gas-powered vehicles and cushioning its tariff risk with a $4B investment in U.S. facilities.
“We believe Barra & Co are prepared for all options on the table as it balances its ICE and EV strategies and see this company embarking down a major path of growth ahead with ICE models starting to make up a larger portion of its business,” said Wedbush’s Dan Ives, reiterating his Outperform rating on GM with a new price target of $95.
As electric vehicles are expected to take up a smaller share of the total automobile market in 2026, GM (GM) has taken a prudent approach to minimizing its EV exposure. GM’s (GM) $1.6B one-time charge pales dramatically in comparison to Ford’s (F) massive $19.5B charge to shrink its EV footprint.
“With GM looking to re-calibrate around high-demand, high-margin business, we believe the company is taking the right approach to navigate the EV storm,” Ives continues.
On the tariff front, GM’s (GM) exposure to import tariffs has been mitigated by the company’s efforts to domesticate its supply chain and reach its target to produce 2 million more vehicles in the U.S., “the right approach to further navigate choppiness in its supply chain while progressive key initiatives.”
Agrees Seeking Alpha analyst David Trainer who also rates the company as a Buy even at its current valuation. “General Motors’ ability to grow its share of the EV market despite scaling down its EV operations is impressive. Add in that the company is also growing its share of the overall auto market, and you have a company that appears to have made some very smart decisions over the past several years,” Trainer writes.
Despite third-quarter results that highlighted tariff-related costs and ongoing challenges in its EV segment, General Motors (GM) shares have climbed as much as 56%, recently reaching a record high of $83.04, driven by an optimistic outlook centered on its core hybrid and gas-powered models.
Shares are up another 1.3% Thursday, putting GM on track to close higher for a fourth consecutive week.