General Motors’ GM stock crossed $80 per share on Friday and locked in a gain of more than 55% in 2025, putting the automaker on track to finish the year as the top U.S.-traded auto stock, in what is its strongest year since it returned from bankruptcy in 2009. The stock’s price closed on Friday at a brand new all-time high, capping a rally that now stands above last year’s 48.3% gain, according to data from FactSet. The surge did not come from a single day. Shares rose almost 13% this month, extending a streak to five straight months of gains. Trading activity stayed positive week after week starting in June. The stock’s biggest weekly jump came on Oct. 21, when it climbed 19.3% after the company reported third-quarter earnings that beat Wall Street expectations and raised full-year guidance. Management also said earnings in 2026 should exceed 2025 levels. GM executives have argued for years that the stock price did not match earnings results. Mary Barra, chief executive officer of General Motors, repeated that message during the October earnings call. “Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to set GM apart in an increasingly competitive landscape,” Mary said during the call. While GM stock climbed, Mary reduced her personal stake. Public filings confirmed she exercised options or sold about 1.8 million shares this year, worth more than $73 million. As of the last filing in September, she still owned over 433,500 shares, valued above $35 million. Most of her yearly pay came through stock and options rather than cash. Over the past five years, GM’s adjusted earnings per share have steadily exceeded Wall Street estimates in every quarter except the second quarter of 2022. The GM stock’s performance also stood out across the sector. Tesla stock rose by about 17% this year, Ford Motor gained 34%, while Stellantis, the parent of Chrysler, fell by roughly 15%. Other U.S.-listed automakers, including Honda Motor, Toyota Motor, and Lucid Group, posted smaller gains over the same period. Analyst upgrades, policy changes, and buybacks drive GM‘s rally Analysts pointed to cash flow, steady earnings, and shareholder returns as reasons behind the move. Stock buybacks remained a major factor. Paul Jacobson, chief financial officer of General Motors, addressed that point earlier this month. “As long as the stock remains as undervalued as it is, the priority is to buy back shares,” Paul said during a UBS investor conference. “And I think you’ll continue to see that from us going forward.” UBS raised its 12-month price target by 14% to $97 and named the company its top auto pick heading into 2026. Morgan Stanley upgraded the stock to overweight with a $90 price target. Andrew Percoco, an analyst at Morgan Stanley, said in a Dec. 7 investor note that the company leads peers in unit sales growth, average transaction price growth, disciplined incentive spending, and inventory control. He said those factors produced stronger margins and return metrics than rivals. Meanwhile, Donald Trump’s administration loosened U.S. fuel economy and emissions rules, removed penalties set under the prior administration, and renegotiated a trade agreement with South Korea, a major manufacturing base for the company. At the same time, the auto industry faced slower growth in lower-margin electric vehicle sales. Joseph Spak, an analyst at UBS, said in a Dec. 15 investor note that the automaker is positioned to benefit from a relaxed U.S. regulatory setup tied to emissions and fuel economy rules. By press time, analyst averages compiled by FactSet have rated the stock overweight with an $80.86 target price, placing it among the most closely watched stock market trades heading into 2026. Get $50 free to trade crypto when you sign up to Bybit now
