Mary Barra, CEO of General Motors, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.
David A. Grogan | CNBC
DETROIT — General Motors is on pace to be the top U.S.-traded automaker stock of 2025, as shares of GM are having their best year since the Detroit company’s reemergence from bankruptcy in 2009.
GM stock is up over 55% to a record of more than $80 per share, as of Friday’s close, topping the company’s previous annual increase of 48.3% last year. That includes a nearly 13% rise so far in December, adding to five consecutive months of share gains, according to FactSet.
Several factors have been driving the share increase. But GM CEO Mary Barra and other executives have contended for years that the automaker’s stock has been significantly undervalued given its consistent earnings performance.
“Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to set GM apart in an increasingly competitive landscape,” Barra said during the company’s last quarterly earnings call in October.
Amid the stock’s run-up, Barra has significantly cut her position in the company. She has exercised options or sold roughly 1.8 million shares this year, valued at more than $73 million, according to public filings confirmed by GM.
As of the last public filing in September, Barra still owned more than 433,500 shares valued at over $35 million, with much of her annual awards granted in options and stock.
GM’s stock performance compares with a 17% yearly increase for Tesla as of Friday’s close, a 34% jump for Ford Motor and a 15% loss for Chrysler parent Stellantis. Other U.S.-traded automakers such as Honda Motor and Toyota Motor have had smaller annual gains.
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GM ‘s most recent quarterly earnings were a major catalyst for Wall Street analyst bullishness that led to reratings and price target increases after the third quarter.
The automaker’s quarterly adjusted earnings per share have topped Wall Street estimates every quarter except the second quarter of 2022 over the past five years, according to average expectations of analysts compiled by FactSet.
Wall Street analysts overall have cited GM’s cash generation, earnings resilience and track record in delivering shareholder returns, including stock buybacks, as reasons for their optimism. The automaker also is expected to greatly benefit from regulation changes under the Trump administration, despite ongoing tariffs.
UBS recently increased its 12-month price target on GM stock by 14% to $97 per share, while naming the company its top autos pick heading into 2026. Morgan Stanley earlier this month also upgraded GM to overweight, with a $90 per share price target.
“In our view, General Motors leads the D3 in the North America and Global market with steady unit sales growth, [average transaction price] growth, disciplined incentive spend, and inventory management. This has resulted in better [earnings before interest and taxes] margin and return metrics than peers,” Morgan Stanley analyst Andrew Percoco said in a Dec. 7 investor note.
GM stock has cumulatively been in the black on a weekly basis since June. The largest weekly gain of 19.3% occurred when the automaker reported its third-quarter earnings on Oct. 21. Those results beat Wall Street’s expectations and the company raised its annual guidance, adding that next year’s earnings are expected to be better than 2025’s.
GM stock’s has also seen a boost from some external factors. The Trump administration has loosened U.S. fuel economy and emissions standards, removed related penalties that were imposed under the Biden administration, and renegotiated its trade deal with South Korea, a major manufacturing hub for GM. Meanwhile, the industry has been seeing a slowdown in less profitable EV sales.
“GM is effectively a regional (NA) [automaker] and we believe they are well positioned to benefit from the relaxed US regulatory environment (emissions and fuel economy),” UBS analyst Joseph Spak said in a Dec. 15 investor note raising the per share price.
GM CFO Paul Jacobson earlier this month said the company will continue stock buybacks.
“As long as the stock remains as undervalued as it is, the priority is to buy back shares. And I think you’ll continue to see that from us going forward,” he said during a UBS investor conference.
GM is rated overweight with an $80.86 target price, according to analyst averages compiled by FactSet.
— CNBC’s Michael Bloom contributed to this report.
Correction: Lucid shares are down for the year. An earlier version misstated their move.
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