Key Stock Developments on Friday: Factors That May Influence the Market in the Upcoming Trading Session
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Source: CNBC
Market Overview: The S&P 500 has declined for five consecutive days, with various automotive stocks showing mixed performance; Stellantis' Jeep brand is set to unveil the new Cherokee amid a 26% drop in stock this year.
Automotive Stocks Performance: Ford and General Motors have seen gains of 14% and 6% respectively this year, while Tesla is down 20% year-to-date but up 43% over the past year.
Buckle and AT&T Updates: Buckle will report quarterly numbers soon, having gained 35% in three months. AT&T reached a new high, up 29% year-to-date, with an RSI indicating it may be overbought.
Sector Performance: The insurance sector is performing well, with Everest and Arthur Gallagher seeing increases, while the airline industry is struggling, with Delta and United both experiencing declines this week.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 79.580
Low
57.00
Averages
95.06
High
122.00
Current: 79.580
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI and GM Financial. Its GM North America (GMNA) and GM International (GMI) segment develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's GM Financial segment provides automotive financing and related services. The Company is also focused on investing in electric vehicles (EVs) and autonomous vehicles (Avs), software-enabled services and subscriptions and new business opportunities. The Company's portfolio includes OnStar, GM Energy, GM Insurance, GM Genuine Parts, and the GM Company Store. Its OnStar portfolio offers safety, connectivity and hands-free driver assistance technologies. Its GM Energy provides Home EV Charging, Public EV Charging, Vehicle-To-Home and Energy Storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ford's Battery Storage Business Poised for Growth
- Battery Storage Initiative: Ford plans to launch its battery storage business in 2026, with projected revenues reaching $5 billion by 2030, indicating a strategic pivot in response to declining EV demand in the U.S.
- Positive Market Reaction: Morgan Stanley's forecast of $500 million to $600 million in annual operating profit from Ford's energy business fueled a 45% stock surge in May, reflecting investor confidence in the new business model.
- Competitor Developments: General Motors is also exploring energy storage solutions, including a vehicle-to-grid project in partnership with utility companies and the development of sodium-ion batteries, highlighting increased competition in the energy market.
- Profitability Analysis: While Ford anticipates $5 billion in additional revenue by 2030, its current 0.8% operating profit margin suggests only $40 million in profit, indicating that the new business's profitability will require time to materialize.
See More
Ford's New Energy Storage Business Captivates Investors
- New Business Launch: Ford announced plans to initiate its battery energy storage business in 2026, with production set to begin in mid-2027 and an annual capacity of 20 gigawatt-hours, potentially generating $5 billion in new revenue by 2030, thereby significantly enhancing its competitiveness in the energy market.
- Positive Market Reaction: Morgan Stanley predicts that Ford's energy business could yield between $500 million and $600 million in annual operating profit, a forecast that propelled Ford's stock to soar 45% in the last two weeks of May, indicating strong market approval of its new strategy.
- Competitor Developments: General Motors is also exploring energy storage solutions, planning to partner with utility companies for a vehicle-to-grid system and collaborating with Redwood Materials to recycle old batteries, highlighting the industry's keen interest and competitive landscape in energy solutions.
- Profitability Analysis: With Ford's current operating profit margin at approximately 0.8%, achieving $5 billion in revenue by 2030 would only add about $40 million in profit, raising questions about its profitability compared to GM's 6.6% margin, suggesting that Ford's new business model requires further validation for financial success.
See More
General Motors Stock Recovery and New Opportunities
- Stock Recovery: General Motors has seen its stock rise nearly 70% over the past 52 weeks, despite only a 1% increase year-to-date, indicating improvements in margins, cash flow, and shareholder returns, reflecting market recognition of its transformation.
- New Business Collaboration: The partnership with Lockheed Martin opens new growth avenues for GM, potentially diversifying its revenue streams and enhancing its competitive position in the market.
- Technical Analysis Signals: The technical charts indicate that GM's stock is currently forming a pattern similar to past successful rounded bottom breakouts, with a breakout above $84 potentially targeting $98, suggesting significant upside potential.
- Risk Management Strategy: Investors should consider adding to their positions near the 200-day moving average at $74, with a stop-loss set at $72 to manage potential market volatility while positioning for future gains.
See More
BYD Considers Entering Formula 1 Racing
- Brand Expansion Plan: BYD is interested in entering the F1 circuit to enhance its brand presence outside China, although becoming the first Chinese F1 team could cost hundreds of millions, significantly impacting its financials.
- Market Potential Analysis: With 221.1 million F1 fans in China and BYD being the world's largest EV maker, a successful entry into F1 could greatly aid its international market expansion.
- Sponsorship Strategy Advantage: By sponsoring a midfield or back-of-the-pack team, BYD could participate in F1 at a lower cost, avoiding hefty infrastructure investments and technical compliance requirements, thus reducing risk while increasing brand visibility.
- Competition and Challenges: While sponsorship may be a lower-risk option, BYD's status as an OEM could conflict with existing F1 auto manufacturers, potentially affecting its brand positioning and technical showcase in the sport.
See More
Stellantis Faces Major Turnaround Challenges
- Stock Performance Divergence: Over the past three years, GM's stock surged 124%, Ford's gained a mere 4%, while Stellantis plummeted nearly 60%, highlighting significant differences in market performance that reflect each company's operational strategies and market acceptance.
- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
- Warranty Expense Comparison: Stellantis's warranty costs accounted for 4.4% of total revenue, significantly exceeding the historical industry norm of 2% to 3%, while Ford's ratio stood at 3.1%, showing an upward trend, yet Ford's improvement in warranty claims reflects its commitment to quality management.
- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
See More
Stellantis Faces Rising Recall Costs Amid Turnaround Efforts
- Recall Volume Analysis: Stellantis reported 53 recalls in the U.S. for 2025, significantly lower than Ford's 153, yet its recall costs soared to $7.4 billion, highlighting major quality control challenges.
- Warranty Cost Comparison: Stellantis's warranty expenses accounted for 4.4% of total revenue, well above the historical industry norm of 2% to 3%, which not only impacts profitability but also reflects its competitive disadvantage in the market.
- Turnaround Plan: Stellantis is executing a $70 billion turnaround plan aimed at launching 11 new models to boost sales volume in North America by 35%, which is crucial for regaining market share and improving financial health.
- Quality Improvement Strategy: Executives emphasize that enhancing product quality is central to their North American strategy, and if successful, Stellantis could lower warranty costs in the coming years, thereby improving overall financial performance.
See More
Ford's Battery Storage Business Poised for Growth
- Battery Storage Initiative: Ford plans to launch its battery storage business in 2026, with projected revenues reaching $5 billion by 2030, indicating a strategic pivot in response to declining EV demand in the U.S.
- Positive Market Reaction: Morgan Stanley's forecast of $500 million to $600 million in annual operating profit from Ford's energy business fueled a 45% stock surge in May, reflecting investor confidence in the new business model.
- Competitor Developments: General Motors is also exploring energy storage solutions, including a vehicle-to-grid project in partnership with utility companies and the development of sodium-ion batteries, highlighting increased competition in the energy market.
- Profitability Analysis: While Ford anticipates $5 billion in additional revenue by 2030, its current 0.8% operating profit margin suggests only $40 million in profit, indicating that the new business's profitability will require time to materialize.
See More
Ford's New Energy Storage Business Captivates Investors
- New Business Launch: Ford announced plans to initiate its battery energy storage business in 2026, with production set to begin in mid-2027 and an annual capacity of 20 gigawatt-hours, potentially generating $5 billion in new revenue by 2030, thereby significantly enhancing its competitiveness in the energy market.
- Positive Market Reaction: Morgan Stanley predicts that Ford's energy business could yield between $500 million and $600 million in annual operating profit, a forecast that propelled Ford's stock to soar 45% in the last two weeks of May, indicating strong market approval of its new strategy.
- Competitor Developments: General Motors is also exploring energy storage solutions, planning to partner with utility companies for a vehicle-to-grid system and collaborating with Redwood Materials to recycle old batteries, highlighting the industry's keen interest and competitive landscape in energy solutions.
- Profitability Analysis: With Ford's current operating profit margin at approximately 0.8%, achieving $5 billion in revenue by 2030 would only add about $40 million in profit, raising questions about its profitability compared to GM's 6.6% margin, suggesting that Ford's new business model requires further validation for financial success.
See More
General Motors Stock Recovery and New Opportunities
- Stock Recovery: General Motors has seen its stock rise nearly 70% over the past 52 weeks, despite only a 1% increase year-to-date, indicating improvements in margins, cash flow, and shareholder returns, reflecting market recognition of its transformation.
- New Business Collaboration: The partnership with Lockheed Martin opens new growth avenues for GM, potentially diversifying its revenue streams and enhancing its competitive position in the market.
- Technical Analysis Signals: The technical charts indicate that GM's stock is currently forming a pattern similar to past successful rounded bottom breakouts, with a breakout above $84 potentially targeting $98, suggesting significant upside potential.
- Risk Management Strategy: Investors should consider adding to their positions near the 200-day moving average at $74, with a stop-loss set at $72 to manage potential market volatility while positioning for future gains.
See More
BYD Considers Entering Formula 1 Racing
- Brand Expansion Plan: BYD is interested in entering the F1 circuit to enhance its brand presence outside China, although becoming the first Chinese F1 team could cost hundreds of millions, significantly impacting its financials.
- Market Potential Analysis: With 221.1 million F1 fans in China and BYD being the world's largest EV maker, a successful entry into F1 could greatly aid its international market expansion.
- Sponsorship Strategy Advantage: By sponsoring a midfield or back-of-the-pack team, BYD could participate in F1 at a lower cost, avoiding hefty infrastructure investments and technical compliance requirements, thus reducing risk while increasing brand visibility.
- Competition and Challenges: While sponsorship may be a lower-risk option, BYD's status as an OEM could conflict with existing F1 auto manufacturers, potentially affecting its brand positioning and technical showcase in the sport.
See More
Stellantis Faces Major Turnaround Challenges
- Stock Performance Divergence: Over the past three years, GM's stock surged 124%, Ford's gained a mere 4%, while Stellantis plummeted nearly 60%, highlighting significant differences in market performance that reflect each company's operational strategies and market acceptance.
- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
- Warranty Expense Comparison: Stellantis's warranty costs accounted for 4.4% of total revenue, significantly exceeding the historical industry norm of 2% to 3%, while Ford's ratio stood at 3.1%, showing an upward trend, yet Ford's improvement in warranty claims reflects its commitment to quality management.
- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
See More
Stellantis Faces Rising Recall Costs Amid Turnaround Efforts
- Recall Volume Analysis: Stellantis reported 53 recalls in the U.S. for 2025, significantly lower than Ford's 153, yet its recall costs soared to $7.4 billion, highlighting major quality control challenges.
- Warranty Cost Comparison: Stellantis's warranty expenses accounted for 4.4% of total revenue, well above the historical industry norm of 2% to 3%, which not only impacts profitability but also reflects its competitive disadvantage in the market.
- Turnaround Plan: Stellantis is executing a $70 billion turnaround plan aimed at launching 11 new models to boost sales volume in North America by 35%, which is crucial for regaining market share and improving financial health.
- Quality Improvement Strategy: Executives emphasize that enhancing product quality is central to their North American strategy, and if successful, Stellantis could lower warranty costs in the coming years, thereby improving overall financial performance.
See More
