Seeking Alpha downgraded General Motors (GM) from buy to hold. The rating change follows a 91% stock rally since April 2024 that resulted in a less attractive valuation.
GM achieved a 15.2% share of the U.S. electric vehicle market. However, the company is now scaling back EV production and incurring significant charges due to softening demand.
Financial results for 2025 showed revenue and unit declines across all operating regions. Adjusted net profit guidance for 2026 is positioned only slightly above 2025 levels.
Growth prospects face pressure from intensifying competition in China and the expiration of specific EV tax credits. Macroeconomic softness continues to weigh on the near-term outlook.