General Motors (GM) Stock Forecast & Price Target

General Motors Co. reported a 2.6% year-over-year increase in net sales, reaching $187.4 billion, driven by strong demand for full-size pickups and SUVs, alongside contributions from new electric vehicle launches. The company achieved a significant sales volume of 1.56 million vehicles globally, marking a 7.5% increase year-over-year, and experienced an increase of 14% in deferred revenue from its technology offerings, highlighting a successful expansion of its software services revenue base. GM's operating efficiency is evident, with EBITDAR growing 11.6% year-over-year to $28.8 billion, and a projected sales growth of 2.4% to $191.9 billion over the next 12 months further bolsters the positive outlook for the stock.

General Motors is facing a negative outlook due to several significant factors, including a potentially weaker macroeconomic environment that could lead to reduced profits and cash flow. Moreover, persistent supply chain challenges and the costly transition to electric and autonomous vehicles are anticipated to suppress margins in the short term, particularly as the profitability of GM's technology initiatives remains uncertain with a wide range of potential outcomes. Additionally, the company is expected to incur substantial tariff-related costs between $4 billion to $5 billion, which further complicates its ability to enhance its earnings before interest and taxes (EBIT) and free cash flow metrics.