General Motors used to be the stock everyone loved to ignore. For years, it felt like a "value trap"—a company that made billions of dollars but traded at a pittance because nobody believed legacy carmakers could survive the electric revolution.
Things changed.
The price of GM stock recently hit a 52-week high of $85.18 on January 8, 2026. As of mid-January, it’s hovering around the $80.82 mark. If you’d bought in a year ago when it was languishing in the low $40s, you’d be up nearly 65%.
Honestly, that’s not a normal "old car company" return. That’s more like a tech stock rally. But the story behind these numbers is a lot messier than just "EVs are good." In fact, the recent surge has as much to do with big gas-powered trucks and aggressive stock buybacks as it does with battery tech.
The $16 Billion "X" Factor
If you look at a chart of General Motors over the last two years, you’ll notice something analysts call the "X." It’s basically what happens when a company aggressively kills its own share count while the price goes up.
Since 2023, GM has announced a staggering $16 billion in share buybacks.
When a company buys back its own stock, it reduces the supply. Fewer shares mean each remaining share owns a bigger piece of the profit pie. Investors like the Motley Fool have pointed out that while GM’s dividend yield is low—currently around 0.74% with a 15-cent quarterly payout—its "total yield" (including those buybacks) is north of 11%.
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Compare that to Ford.
Ford usually gets the "income" crowd because their dividend yield often sits above 4%. But GM has been the better performer lately because they’ve been more surgical about how they return cash. They aren't just handing out checks; they are fundamentally changing the math of their stock price.
Why the Price of GM Stock is Defying the EV Slump
You’ve probably heard the headlines about the "EV winter." It’s a real thing. Consumers are getting spooked by range anxiety, high prices, and the loss of federal tax credits.
GM isn't immune.
Just this month, the company took a massive $7.1 billion charge. Most of that was tied to scaling back EV production capacity and restructuring their struggling Chinese joint venture. That’s a lot of money to set on fire. Yet, the stock didn't crater. Why?
The market actually breathed a sigh of relief.
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Investors like it when CEOs admit a plan isn't working perfectly and pivot. Mary Barra has been vocal about "playing both sides." GM is reintroducing plug-in hybrids (PHEVs) to the U.S. market, a move they previously said they wouldn’t do. They realized that full EVs are the "end game," but for 2026 and 2027, people still want a gas tank for backup.
The Profit Engines: Trucks and SUVs
While the media talks about the Chevy Equinox EV or the Cadillac Lyriq, the price of GM stock is actually supported by the Chevrolet Silverado and the GMC Sierra.
In 2025, GM led the U.S. auto industry in sales, growing 6% for the full year. They’ve been the full-size pickup leader for six straight years. These trucks are massive profit machines. Every time someone buys a high-trim Sierra Denali for $80,000, it funds the research for the next Ultium battery.
What the Analysts are Saying Right Now
Wall Street is surprisingly bullish for a change. Out of 26 analysts tracked by major services, 18 have a "Buy" rating.
- Citi recently maintained a price target of $98.
- RBC Capital is looking at $92.
- Piper Sandler recently upgraded their outlook to $98 as well.
There are still bears, though. HSBC has a "Hold" with a target of $75, citing concerns that GM can't pass all their costs on to consumers if the economy slows down. And they have a point. GM’s debt-to-equity ratio is around 2.0, which is high. They rely heavily on debt to keep the factories running and the R&D flowing.
The China Problem
You can't talk about GM without talking about China. It used to be their golden goose. Now? Not so much.
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Domestic Chinese brands like BYD are eating everyone’s lunch. GM’s $1.1 billion restructuring charge for its SAIC-GM joint venture is a clear sign that the old way of doing business in Asia is dead. The price of GM stock reflects a company that is slowly pulling back from global dominance to focus on being the king of North America.
It's a "fortress America" strategy. It might lack the "change the world" vibe of the early 2020s, but for a shareholder, it’s much safer.
Looking Ahead: What to Watch For
The big date on the calendar is January 27, 2026. That’s when GM drops its full-year 2025 earnings report.
If they show that their EV losses are narrowing—even by a little bit—the stock could break toward that $100 mark. But keep an eye on the "special charges." The company has already warned that more material charges could occur in 2026 as they continue to shuffle their manufacturing footprint.
Actionable Insights for Investors
If you're watching the price of GM stock, don't just look at the ticker. Look at the inventory.
High inventory on dealer lots usually means big discounts are coming, which kills margins. Currently, GM’s incentives are actually lower than the industry average, which is a great sign. It means people are buying their cars because they want them, not just because they're cheap.
- Monitor the Buyback Pace: If GM slows down their share repurchases, the "support" for the stock price might soften.
- Watch the Hybrid Launch: The success of the upcoming 2027 plug-in hybrids will tell us if Barra’s "both sides" strategy is actually going to work.
- Check the PE Ratio: Even at $80, GM trades at a forward P/E of around 7x to 8x. Compared to the S&P 500 average of 20x+, it’s still "cheap" by historical standards, though car companies always trade at a discount.
The story of GM is no longer about whether they will survive. It’s about how much of the "old world" profit they can keep while they build the "new world" tech. So far, the market likes the balance they've struck.
Next Steps for You
To get a better handle on where General Motors is headed, your next step should be to review the upcoming Q4 2025 earnings transcript on January 27th. Pay specific attention to "Adjusted Automotive Free Cash Flow" and any updates on the $6 billion EV spending scale-back. This will give you the clearest picture of whether the current $80 price point is a sustainable peak or just a temporary stop on the way to new highs.