Detroit-based American giant General Motors’ stock price has been on the fast track for the last 2 years. From the lows of $26 in November 2023, the stock currently trades around $74, a 68.6% annualized return. As of November 2025, GM has a market cap value of $69.6 billion.
In the previous quarter alone, GM shares have risen 24.5%, surpassing the S&P 500 and Dow Jones by about 20%. So far, 2025 has been a wonderful year for GM shareholders, with the stock up 45%.
Financials
The Q3 financial results have impressed both investors and analysts alike with improved guidance figures and exceeding market estimates. General Motors’ Q3 results have outdone nearly all estimates.
In Q3, GM reported a revenue of nearly $48.6 billion, beating Wall Street estimates by over $4 billion. GM reports an adjusted EPS (Earning per Share) of $2.8, beating the market’s estimates of $2.28.
Even though there has been a slight dip in overall revenue compared to the previous quarter, the falling trend is not exclusive to GM. The entire automaker industry has felt the impact on revenues following the announcement of Trump’s tariffs.
Company Guidance Update
GM has also improved upon its guidance of Automotive Free Cash Flow (adjusted) by $2.5 billion at the lower end and $1 billion at the upper end, bringing the 2025 estimate between $7.5 billion and $11 billion.
These numbers exemplify GM’s move towards better productive efficiency and supply chain control as reflected in their investments into domestic production for OEMs through plants in Michigan, Kansas and Tennessee amidst changing trade policies.
In the company’s Q3 Letter to Shareholders, CEO Mary Barra thanked her team as GM achieved its highest market share domestically in Q3 since 2017. This follows a substantive 20% increase in the lower bound of GM’s EBIT-Adjusted guidance numbers, which now stand between $12 billion and $13 billion.
Even with the price surge, most analysts still view the stock as undervalued, with its strong Discounted Cash Flow (DCF) numbers and its Price-to-Earnings (PE) ratio being below the Auto Industry average.
Risk Factors
Given all the green flags, one must still be cautious of GM’s debt position. GM’s debt is $135 billion, which exceeds the $29.5 billion cash on the company’s balance sheet. This is a 5x Net-Debt to EBITDA (Net Debt = Debt – Available Cash) ratio showing that the company is overleveraged.
Further, in addition to high competition in the EV space amidst evolving trade policies, GM is still struggling with the looming threat that all US-based automakers face.
General Motors is the parent company of accomplished brands such as Cadillac, Chevrolet, Buick and GMC, alongside more brands focused on the Asian Market. In the US, GM’s Chevrolet Equinox is the 3rd highest-selling (YTD) EV, selling over 50,000 units as Americans rushed to take advantage of the $7,500 tax credit purchasing an EV. The program ended on September 30th.
GM’s surge in stock price also correlates with an increase in overall global awareness for the brand as it prepares to enter Formula One as Cadillac Formula 1 Team in the 2026 season. This move brings Cadillac and GM to the forefront of Automotive technology as they begin work on a new line of Hybrid Formula One Engines, which will also help the Road Car division of GM’s Automotive Banner. This also comes at a time when Cadillac repositioned to aim for a third of all sales to be electric, as it leads the space in Luxury EVs.