Mary Barra, CEO of General Motors, attends the Allen and Co. Sun Valley annual technology and media conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.
David A. Grogan | CNBC
DETROIT— general motors is on track to be the most traded automaker stock in the U.S. in 2025, as GM stock is having its best year since the Detroit company's resurgence from its 2009 bankruptcy.
GM shares have risen more than 55% to a record high of more than $80 per share as of Friday's close, surpassing the company's previous annual gain of 48.3% last year. That includes a nearly 13% rise so far in December, adding to five straight months of stock gains, according to FactSet.
Several factors have been driving the increase in participation. But GM CEO Mary Barra and other executives have argued for years that the automaker's stock has been significantly undervalued given its consistent earnings performance.
“Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to differentiate GM in an increasingly competitive landscape,” Barra said during the company's latest quarterly earnings conference call in October.
Amid the stock's rise, Barra has significantly trimmed his position in the company. It has exercised options or sold approximately 1.8 million shares this year, valued at more than $73 million, according to public documents confirmed by GM.
As of the last public filing in September, Barra still owned more than 433,500 shares valued at more than $35 million, with much of his annual awards coming in options and stock.
GM stock performance compares to 17% year-over-year gain for tesla at the close of Friday, a jump of 34% for Ford engine and a 15% loss for Chrysler's parent company. stellantis. Other US-listed automakers, such as HondaEngine and ToyotaEngine They have had lower annual profits.
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GM's most recent quarterly earnings were a major catalyst for Wall Street analyst optimism that led to reratings and price target increases after the third quarter.
The automaker's quarterly adjusted earnings per share have surpassed Wall Street estimates every quarter except the second quarter of 2022 over the past five years, according to average analyst expectations compiled by FactSet.
Wall Street analysts have generally cited GM's cash generation, earnings resilience and track record of delivering returns to shareholders, including share buybacks, as reasons for their optimism. The automaker is also expected to benefit greatly from regulatory changes under the Trump administration, despite the tariffs in place.
UBS recently raised its 12-month price target on GM shares by 14% to $97 per share, while naming the company its top auto pick heading into 2026. Morgan Stanley earlier this month also upgraded GM to overweight, with a price target of $90 per share.
“In our opinion, General Motors leads D3 in the global and North American market with consistent unit sales growth. [average transaction price] growth, disciplined spending on incentives and inventory management. This has resulted in better [earnings before interest and taxes] margin and yield than peers,” Morgan Stanley analyst Andrew Percoco said in a Dec. 7 investor note.
GM shares have been cumulatively in the black on a weekly basis since June. The biggest weekly gain of 19.3% came when the automaker reported its third-quarter earnings on October 21. Those results beat Wall Street expectations and the company raised its annual guidance, adding that next year's earnings are expected to be better than those of 2025.
GM stock has also seen a boost due to some external factors. The Trump administration relaxed U.S. fuel economy and emissions standards, removed related sanctions that were imposed under the Biden administration and renegotiated its trade deal with South Korea, a major GM manufacturing hub. Meanwhile, the industry has seen a slowdown in sales of less profitable electric vehicles.
“GM is effectively a regional organization (NA) [automaker] and we believe they are well positioned to benefit from the relaxed US regulatory environment (emissions and fuel economy),” UBS analyst Joseph Spak said in a Dec. 15 investor note, raising the share price.
GM Chief Financial Officer Paul Jacobson said earlier this month that the company will continue stock buybacks.
“As long as the shares remain so undervalued, the priority is to buy back shares. And I think we will continue to see that in the future,” he said during a UBS investor conference.
GM is rated overweight with a price target of $80.86, according to analyst averages compiled by FactSet.
—CNBC Michael Bloom contributed to this report.
Correction: Lucid stock is down for the year. An earlier version misstated his move.
