GM Faces Major Impact from US Auto Tariffs

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Apr 08, 2025
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Key Takeaways:

  • General Motors faces significant impacts from the 25% tariffs on imported vehicles.
  • Analyst price targets suggest a strong potential upside for GM's stock.
  • Consensus indicates an "Outperform" status, reflecting positive sentiment among analysts.

General Motors Co (NYSE: GM) finds itself at a crucial juncture as it navigates the challenges posed by the 25% tariffs on imported cars, imposed under President Trump's administration. In 2024, General Motors, along with Stellantis and Ford, collectively sold 1.85 million imported vehicles in the United States. This substantial volume makes these automakers more vulnerable to the tariffs compared to international competitors like Toyota and Volkswagen.

Wall Street's Optimistic Outlook for General Motors

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According to 25 Wall Street analysts, General Motors Co (GM, Financial) is positioned for notable growth. The average one-year price target stands at $59.31, with the potential to rise as high as $105.00 or dip to a low of $35.00. This average target price suggests a significant upside potential of 39.63% from GM's current trading price of $42.48. Investors seeking more detailed price estimate data can visit the General Motors Co (GM) Forecast page.

Brokerage Consensus and Performance Indicators

The collective outlook from 29 brokerage firms assigns General Motors Co (GM, Financial) an average brokerage recommendation of 2.4. This rating, classified as "Outperform," signifies a favorable view from analysts, where 1 represents a Strong Buy and 5 signifies a Sell.

In line with GuruFocus estimates, the GF Value for General Motors Co (GM, Financial) is projected to be $58.19 in one year. This projection implies a potential upside of 36.98% from the current price. The GF Value is a measure of the fair value at which the stock should ideally trade, factoring in historical trading multiples and past business performance, alongside future growth projections. Investors can access more comprehensive data on the General Motors Co (GM) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.