General Motors Co. (GM) is playing the automotive transition smarter than most of its competitors, and Wall Street is taking notice. While the industry wrestles with the slow pace of electric vehicle adoption, GM has quietly repositioned itself to profit from what's actually selling: traditional gas-powered cars.
Wedbush analyst Dan Ives reaffirmed his Outperform rating on GM while bumping the price target from $75 to $95. His reasoning? The company is "executing better than its auto peers who have struggled in the EV transition" while maintaining strong cash flow from its internal combustion engine business.
Reading the Room on EVs
Here's the reality check: electric vehicles are expected to represent only about 10% of the U.S. auto market in 2026, according to Ives. GM saw this coming and acted accordingly, reducing EV capacity across its supply chain as demand cooled.
The contrast with Ford Motor Co. (F) is striking. Ford recently announced a staggering $19.5 billion special charge to dismantle its EV plans. GM? Just $1.6 billion. The difference comes down to timing and foresight. GM had already begun making adjustments, including shifting its Orion plant from electric vehicles back to traditional engines.
This strategic pivot allows GM to "increase reliance of its strong ICE portfolio to drive margins and generate stable free cash flow into 2026," Ives noted. In other words, the company is leaning into what it does well while others scramble to salvage expensive EV bets.
Tariff Protection Built In
GM is also preparing for potential trade headwinds. The automaker has directed thousands of suppliers to consolidate their supply chains away from China by 2027, giving it a cushion against tariff risks that could hammer competitors caught flat-footed.
GM shares were up 1.42% at $81.65 on Thursday, trading near the stock's 52-week high of $83.04. That's what happens when you navigate supply chain chaos and an uncertain EV transition better than everyone else.
