Honestly, if you looked at General Motors stock today, you’d see a sea of red. The price is hovering around $81.37, down over 2% since the opening bell. It feels like a gut punch, especially after the monster run GM had in 2025. Last year, this stock was basically the "comeback kid" of Detroit, soaring 60% while Tesla was busy tripping over its own feet. But 2026? Yeah, 2026 is starting with a reality check.
The big headline everyone is chewing on is a massive $7.1 billion charge GM is taking for the fourth quarter. Most of that—about $6 billion—is basically GM admitting that their aggressive electric vehicle (EV) dreams hit a wall. They're devaluing assets and settling supplier contracts because, well, the world changed. Washington pulled the $7,500 EV tax credit, the EPA loosened up on emissions, and suddenly, those giant battery factories look a lot like expensive paperweights.
What’s Actually Happening with GM?
Investors are currently playing a high-stakes game of "is the glass half full?" On one hand, Mary Barra just confirmed that GM is pivoting back to what actually makes them money: massive, gas-chugging trucks and SUVs. They’re even moving the production of the Chevy Blazer and Equinox back to the U.S. from Mexico to dodge those incoming 2026 tariffs. It’s a "no-regret" move, as she calls it.
On the other hand, a $7 billion write-down is a lot of cash to set on fire.
The China Problem Nobody Wants to Talk About
While the EV pivot gets the clicks, the restructuring in China is the quiet disaster. GM is taking a $1.1 billion hit there just to deal with their joint venture with SAIC. China used to be GM’s piggy bank. Now? They’re fighting for scraps against local brands that can build cars for half the price. It's messy. Honestly, it’s kinda surprising the stock isn't down more given how much ground they’ve lost in Shanghai.
The Analyst Divorce
Wall Street is split right down the middle on General Motors stock today. You’ve got the bulls like Joseph Spak at UBS and Dan Ives at Wedbush still pounding the table with price targets near $95 or $100. They see a company that’s finally disciplined, buying back its own shares, and trading at a "silly" P/E ratio of about 7x.
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Then you have the skeptics. Morgan Stanley’s Adam Jonas recently upgraded them to overweight with a $90 target, but others are worried about the debt. GM’s debt-to-equity ratio is sitting at 2. That’s a lot of leverage when you’re also trying to invent the future of driving.
The Secret Weapon: Eyes-Off Driving in 2028
If you want to know why some people are still buying the dip, look at what happened in October. GM held this "Forward" event in New York and basically said, "Hey, we didn't actually kill Cruise."
They’re taking all that AI tech from the robotaxi experiments—five million miles of driverless data—and shoving it into a new consumer system. They’re promising "eyes-off, hands-off" driving by 2028, starting with the Cadillac Escalade IQ.
- Super Cruise is already on 23 models.
- They’ve mapped 600,000 miles of highway.
- The 2026 models are getting a Google Gemini-powered AI assistant.
This isn't just about lane-keeping anymore. They’re trying to build a car that actually thinks. If they pull this off, GM becomes a tech company that happens to sell trucks. If they fail, it’s just another expensive R&D bill.
Is GM Still a Value Play?
Compared to Tesla’s astronomical valuation, GM looks like a bargain-bin find. But there’s a reason it’s cheap. The market is terrified of the "bifurcated consumer." Basically, rich people are still buying $100,000 Cadillacs, but the average person is getting crushed by inflation and interest rates.
Mary Barra told CBS recently that she thinks 2026 will be better than 2025. She’s betting on a "level playing field." But with Ford also taking a nearly $20 billion hit on their own strategy shift, the entire Detroit auto sector is in a state of controlled chaos.
What to Watch Next
- January 27th Earnings: This is the big one. We’ll see the full damage of those Q4 charges.
- Dividend Growth: GM’s dividend has actually grown over 20% in the last few years. It’s small (0.72%), but it’s moving.
- The $78 Support Level: If the stock breaks below $78, things could get ugly fast.
Practical Insight for Your Portfolio:
If you’re looking at General Motors stock today, don't just look at the price chart. Look at the inventory on the dealer lots. If those gas-powered Sierras and Silverados keep selling, the EV write-offs won't matter in the long run. The company is basically funding its future with its past. It's a risky bridge to cross, but at a 7x multiple, you're at least not paying a premium for the drama.
Keep a close eye on the Zacks Rank. Currently, GM holds a Rank #1 (Strong Buy) because their earnings estimates for the rest of 2026 are actually trending up, despite the drama. That’s a rare divergence you don't see often. Use the volatility of the $7.1 billion charge announcement to scout for entry points if you believe the "pragmatic" pivot to hybrids and trucks is the right call for the current political climate.