General Motors Shares Rally 13% in December, Poised for Best Year Since 2009

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General Motors shares rose roughly 13% in December to hit new all-time highs, marking a fifth consecutive monthly gain and positioning the stock for its best performance since emerging from bankruptcy in 2009. The rally reflects the automaker’s strong cash generation and resilient earnings through 2025.

1. Recent Trading Performance and Market Position

General Motors closed its most recent trading session down 1.23%, underperforming the broader market with a closing quote of $81.32. Over the past month, GM shares have climbed 13.53%, following a 4.94% increase in the prior month, extending a multi-month winning streak that has delivered a 61.22% year-to-date gain. Trading volume on the latest session was 58 million shares, near the three-month daily average of 84 million. The company’s dividend yield stands at 0.72%, or $0.15 per share quarterly, reflecting consistent cash returns to shareholders.

2. Strategic Investments and Electrification Drive

GM is investing heavily in its electric vehicle and battery production ecosystem. The company has committed $888 million to its Tonawanda, New York propulsion plant to begin next-generation small-block V8 engine production in 2027, while simultaneously scaling EV output with its Ultium battery system. Three new battery gigafactories in Ohio, Tennessee and Lansing are operational, and GM forecasts its EV division will reach profitability this year, driven by models such as the Hummer EV, Chevy Silverado EV and Cadillac Lyriq. In parallel, the Cruise robotaxi partnership with Uber is scheduled to launch driverless ride-hailing services in select U.S. cities in 2025, opening a new revenue stream.

3. Analyst Ratings and Future Outlook

Of the 18 analysts covering GM, 15 carry buy ratings, two hold and one sell, resulting in a consensus Strong Buy recommendation. The median one-year price target is $79.72, suggesting modest upside potential relative to current levels. Wall Street expectations for 2025 include net income of $11.2 billion to $12.5 billion, versus $6.0 billion reported in 2024, and diluted EPS of $11.00 to $12.00, up from $6.37 last year. GM’s five-year total return has exceeded 100%, underpinned by disciplined capital allocation, a dividend reinvestment plan and progress toward full electrification.

Sources

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