GM Poised to Lead U.S. Auto Stocks by 2025

General Motors is on a trajectory to become the leading automaker stock in the U.S. by the end of 2025, significantly outpacing competitors like Ford, Tesla, and Stellantis.

This year, GM’s stock has surged over 55%, reaching a record of more than $80 per share as of Monday’s market close, marking its best performance since emerging from bankruptcy in 2009.

December alone saw a nearly 13% increase, which extends a streak of five consecutive months of gains, as noted by FactSet.

In contrast, Ford and Tesla saw stock increases of 34% and 17%, respectively, while Honda and Toyota had modest profits. Stellantis, owner of Jeep, Ram, and Dodge, even faced a 15% decline.

Despite challenges like trade tensions and economic uncertainty, GM has consistently surpassed Wall Street’s earnings expectations. This trend is expected to continue, particularly as the company benefits from favorable policies established during the Trump administration.

In October, CEO Mary Barra noted that GM’s innovative vehicles, new technology, and positive customer experiences will distinguish the company in a competitive market during a quarterly earnings call.

This year, Barra has exercised options or sold approximately 1.8 million shares, totaling over $73 million, according to public disclosures. As of the last filing in September, she still owned more than 433,500 shares valued at over $35 million.

GM has exceeded adjusted earnings per share forecasts for nearly every quarter over the past five years, barring one in mid-2022, as per FactSet. Analysts remain optimistic, praising GM for its robust revenue growth and dedication to shareholder returns.

UBS has recently raised its 12-month price target for GM by 14%, now estimating it at $97 per share. Meanwhile, Morgan Stanley upgraded its rating, setting a target of $90.

The automaker projects that profits in the next fiscal year could be even better than those reported in 2025, possibly benefiting from shifts in administration policies. Earlier this month, President Trump suggested relaxing fuel economy standards, marking a departure from the prior administration’s stance, and also removed certain penalties imposed on automakers.

A new trade deal with South Korea was also announced, introducing lower tariffs on vehicles and auto parts, which are significant for GM’s manufacturing operations.

GM’s Chief Financial Officer Paul Jacobson mentioned the company’s intention to continue stock buybacks, emphasizing that they will prioritize this strategy as long as shares remain undervalued.

The average analyst rating for GM stands at Overweight, with a target price of $80.86, according to FactSet.