General Motors Faces $7.1 Billion Loss from EV Investments, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Source: Benzinga
- EV Investment Loss: General Motors is facing a staggering $7.1 billion loss from its electric vehicle investments, which has led to a 0.63% drop in its premarket stock price, reflecting market concerns over its future profitability.
- Market Reaction: Despite the significant loss, GM maintains a strong price trend in the short term, indicating investor confidence in its long-term strategy, although short-term stock volatility may increase.
- Industry Impact: This loss not only affects GM's financial health but could also negatively impact investor confidence across the entire electric vehicle sector, especially in an increasingly competitive market environment.
- Strategic Reevaluation Needed: GM must reassess its electric vehicle strategy to adapt to market changes and investor expectations, ensuring it remains competitive in the future electric vehicle market.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
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, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
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.
General Motors Shares Hit All-Time High Amid Strong Growth
- Strong Profit Growth: General Motors (GM) achieved double-digit profit growth despite challenges from tariffs and EV restructuring, leading to an all-time high in stock price and solidifying its position as the top auto brand in the U.S.
- Increased Shareholder Returns: The company announced a 20% increase in its quarterly dividend to $0.18 and a $6 billion stock buyback plan, measures that have bolstered investor confidence and led analysts to reiterate their Buy ratings on the stock.
- Optimistic Future Outlook: Despite a 5% decline in total revenue, GM expects EBIT margins of 8-10% and free cash flow between $9 billion and $11 billion for FY25, demonstrating resilience and profitability in its core operations.
- Ongoing Technology Investments: GM is ramping up investments in electric vehicles and robotics to enhance manufacturing quality and reduce costs, with CEO Mary Barra stating that the company will continue to execute cost-reduction plans to ensure future profitability.
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GM Invests $30M to Enhance Workforce Training for New Vehicle Production
- Training Investment: General Motors is investing $30 million to train its Fairfax, Kansas workforce for new vehicle production, aiming to enhance U.S. auto manufacturing capabilities and maintain industry competitiveness.
- Production Transition: The Fairfax facility is undergoing a $390 million retooling to shift production from the Cadillac XT4 and Chevy Malibu to the new Chevy Equinox and next-generation Buick compact SUV, with Buick Envision production expected to start in 2028.
- Advanced Manufacturing Focus: This investment is part of GM's $5.5 billion commitment to its U.S. manufacturing footprint, ensuring employees stay at the forefront of advanced manufacturing and drive American excellence in the industry.
- Cross-Training Initiatives: Fairfax employees will receive advanced training to adapt to evolving technologies and facilitate cross-training between internal combustion engine and electric vehicle production, enhancing their multi-skill capabilities to meet future market demands.
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