Mary Barra, CEO of Common Motors, attends the annual Allen and Co. Solar Valley Media and Know-how Convention on the Solar Valley Resort in Solar Valley, Idaho, on July 8, 2025.
David A. Grogan | CNBC
DETROIT — Common Motors is on tempo to be the highest U.S.-traded automaker inventory of 2025, as shares of GM are having their greatest 12 months for the reason that Detroit firm’s reemergence from chapter in 2009.
GM inventory is up over 55% to a document of greater than $80 per share, as of Friday’s shut, topping the corporate’s earlier annual enhance of 48.3% final 12 months. That features a practically 13% rise up to now in December, including to 5 consecutive months of share features, in response to FactSet.
A number of elements have been driving the share enhance. However GM CEO Mary Barra and different executives have contended for years that the automaker’s inventory has been considerably undervalued given its constant earnings efficiency.
“Nice autos, modern know-how, a rewarding buyer expertise, together with sturdy monetary outcomes, will proceed to set GM aside in an more and more aggressive panorama,” Barra stated through the firm’s final quarterly earnings name in October.
Amid the inventory’s run-up, Barra has considerably minimize her place within the firm. She has exercised choices or bought roughly 1.8 million shares this 12 months, valued at greater than $73 million, in response to public filings confirmed by GM.
As of the final public submitting in September, Barra nonetheless owned greater than 433,500 shares valued at over $35 million, with a lot of her annual awards granted in choices and inventory.
GM’s inventory efficiency compares with a 17% yearly enhance for Tesla as of Friday’s shut, a 34% soar for Ford Motor and a 15% loss for Chrysler guardian Stellantis. Different U.S.-traded automakers resembling Honda Motor and Toyota Motor have had smaller annual features.
Auto shares
GM ‘s most up-to-date quarterly earnings had been a serious catalyst for Wall Avenue analyst bullishness that led to reratings and value goal will increase after the third quarter.
The automaker’s quarterly adjusted earnings per share have topped Wall Avenue estimates each quarter besides the second quarter of 2022 over the previous 5 years, in response to common expectations of analysts compiled by FactSet.
Wall Avenue analysts general have cited GM’s money era, earnings resilience and observe document in delivering shareholder returns, together with inventory buybacks, as causes for his or her optimism. The automaker additionally is predicted to enormously profit from regulation modifications underneath the Trump administration, regardless of ongoing tariffs.
UBS not too long ago elevated its 12-month value goal on GM inventory by 14% to $97 per share, whereas naming the corporate its prime autos decide heading into 2026. Morgan Stanley earlier this month additionally upgraded GM to chubby, with a $90 per share value goal.
“In our view, Common Motors leads the D3 within the North America and World market with regular unit gross sales development, [average transaction price] development, disciplined incentive spend, and stock administration. This has resulted in higher [earnings before interest and taxes] margin and return metrics than friends,” Morgan Stanley analyst Andrew Percoco stated in a Dec. 7 investor word.
GM inventory has cumulatively been within the black on a weekly foundation since June. The biggest weekly acquire of 19.3% occurred when the automaker reported its third-quarter earnings on Oct. 21. These outcomes beat Wall Avenue’s expectations and the corporate raised its annual steering, including that subsequent 12 months’s earnings are anticipated to be higher than 2025’s.
GM inventory’s has additionally seen a lift from some exterior elements. The Trump administration has loosened U.S. gasoline financial system and emissions requirements, eliminated associated penalties that had been imposed underneath the Biden administration, and renegotiated its commerce cope with South Korea, a serious manufacturing hub for GM. In the meantime, the business has been seeing a slowdown in much less worthwhile EV gross sales.
“GM is successfully a regional (NA) [automaker] and we consider they’re properly positioned to learn from the relaxed US regulatory surroundings (emissions and gasoline financial system),” UBS analyst Joseph Spak stated in a Dec. 15 investor word elevating the per share value.
GM CFO Paul Jacobson earlier this month stated the corporate will proceed inventory buybacks.
“So long as the inventory stays as undervalued as it’s, the precedence is to purchase again shares. And I feel you will proceed to see that from us going ahead,” he stated throughout a UBS investor convention.
GM is rated chubby with an $80.86 goal value, in response to analyst averages compiled by FactSet.
— CNBC’s Michael Bloom contributed to this report.
Correction: Lucid shares are down for the 12 months. An earlier model misstated their transfer.
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