General Motors Stock Surged 65% Over the Past Year

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Summary · why it matters

General Motors stock has surged 65% over the past year, outperforming the S&P 500 and many automotive peers, driven by significant share repurchases and new business ventures. The company has bought back about $30 billion in shares over five years and announced an additional $6 billion buyback program, while also entering the energy storage business and partnering with Lockheed Martin to improve supply chain efficiency. However, the automotive industry faces headwinds including high vehicle costs, with average new car prices above $50,000 and monthly payments at $773, leading to the highest new vehicle loan default rate since 2010. Annual U.S. vehicle sales are estimated at 16.3 million, below pre-pandemic levels, and GM's Chinese subsidiary saw sales fall 22% in the first quarter of 2026 amid intense competition from Chinese automakers. Some analysts believe the stock could rise another 55%, but the article suggests the rally may be fueled by overly optimistic investors overlooking current industry struggles.