This report is an updated version of the report published on 12 May 2025, at 10:55 AM PDT

General Motors Company (NYSE: GM) 

GM is a global company involved in designing, manufacturing, and selling a range of vehicles (trucks, crossovers, cars) and auto parts. They also offer software-based services and subscriptions through their various segments, including GMNA, GMI, Cruise, and GM Financial.

Recommendation Rationale – SELL at USD 49.69 

• Negative Financial Highlights: GM’s net income attributable to stockholders decreased by 28.27% YoY to USD 7,189mn in FY24 vs USD 10,022mn in FY23. Costs and expenses increased to USD 174,658mn in FY24 vs USD 162,544mn in FY23.
• Trading Near the Resistance: GM stock is approaching its R1 level recommended on 6 May 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a Trailing 12-month basis – key trading multiples (EV/EBITDA, Price/Earnings, Price/Cash flow, Price/Book) are higher than the Consumer Cyclicals Sector.
• Market Risk: GM's reliance on a "just-in-time" manufacturing process makes it vulnerable to disruptions in the supply of systems, components, raw materials, and parts. Factors such as labour disputes, natural disasters, or financial instability among suppliers can lead to production delays or increased costs.

GM’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY December'25E) (Illustrative)

Stock might trade at a slight premium to its peers considering the increased revenue in FY24, projected net income growth in FY24, and expected EPS-diluted in FY25. For conducting the valuation, the following peers have been considered: Goodyear Tire & Rubber Co (NASDAQ: GT), Adient PLC (NYSE: ADNT) and Magna International Inc (NYSE: MGA), have been considered.

Considering the current trading levels, risks associated, and volatile market conditions on the back of higher interest rates, a ‘Sell’ rating is assigned to the ‘GM’ at the current market price of USD 49.69 as of May 12, 2025 (6:50 am PDT). 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 12 May 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.