GM stock’s record performance outperforms Tesla and Ford in 2025

DETROIT — GM On track to be the largest automaker stock traded in the US for 2025, General Motors shares are having their best year since the Detroit automaker’s return from bankruptcy in 2009.

GM shares rose more than 55% to a record high 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 roughly 13% rise so far in December, on top of five straight months of stock gains, according to FactSet.

There are several factors that led to the increase in the share. But GM CEO Mary Barra and other executives have maintained for years that the automaker’s shares are undervalued given its consistent earnings performance.

“Great vehicles, innovative technology and rewarding customer experiences, coupled 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 rally, Barra significantly reduced its position in the company. It has exercised options or sold nearly 1.8 million shares this year, worth more than $73 million, according to public filings confirmed by GM.

As of its last public filing in September, Barra still owned more than 433,500 shares worth more than $35 million, with much of its annual awards vested in options and stock.

General Motors stock performance compares to 17% annual increase. Tesla As of Friday’s close, a 34% jump to ford motor And a 15% loss to the parent company Chrysler Stellantis. Other automakers traded in the United States e.g Honda Motor and toyota motor Made smaller annual gains.

General Motors’ recent quarterly earnings were a major catalyst for Wall Street analyst optimism that led to a rerating and price target increase after the third quarter.

The automaker’s adjusted quarterly earnings per share topped Wall Street estimates every quarter except the second quarter of 2022 over the past five years, according to the average of analyst forecasts compiled by FactSet.

Wall Street analysts have generally pointed to GM’s cash generation, earnings resilience and track record of delivering shareholder returns, including stock buybacks, as reasons for their optimism. The automaker is also expected to benefit significantly from regulatory changes under the Trump administration, despite the ongoing tariffs.

UBS recently increased its 12-month price target on GM shares by 14% to $97 per share, while naming the company a top auto pick in 2026. Morgan Stanley also earlier this month upgraded GM to overweight, with a price target of $90 per share.

“In our view, GM leads the D3 in North America and the global market with consistent unit sales growth, [average transaction price] Growth, disciplined incentive spending and inventory management. This has led to the best [earnings before interest and taxes] “Margin and return metrics are better than peers,” Andrew Percoco, an analyst at Morgan Stanley, said in a Dec. 7 note to investors.

GM shares have been in the black cumulatively on a weekly basis since June. The largest weekly gain of 19.3% occurred when the automaker reported third-quarter earnings on October 21. These results exceeded Wall Street expectations and the company raised its annual guidance, adding that next year’s profits are expected to be better than 2025 profits.

General Motors shares also witnessed support from some external factors. The Trump administration has relaxed U.S. fuel economy and emissions standards, removed related sanctions imposed under the Biden administration, and renegotiated its trade deal with South Korea, a major manufacturing hub for General Motors. Meanwhile, the industry is seeing a slowdown in sales of less profitable electric vehicles.

“The GM is actually a regional organization (NA) [automaker] “We believe they are well positioned to benefit from the relaxed U.S. regulatory environment (emissions and fuel economy),” UBS analyst Joseph Spaak said in a Dec. 15 note to investors, raising the stock price.

GM Chief Financial Officer Paul Jacobson said earlier this month that the company would continue stock buybacks.

“As long as the stock remains undervalued, 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 as overweight with a price target of $80.86, according to analyst averages compiled by FactSet.

– CNBC Michael Bloom She contributed to this report.

Correction: Lucid shares are down for the year. An earlier version misstated their movement.