Can GM Stock Reach $100? 2025 Price Prediction Analysis Reveals Multiple Paths

General Motors stock has demonstrated remarkable strength, with a year-to-date rally positioning the automotive giant among the S&P 500’s top performers. The central question capturing investor attention is whether GM stock can sustain momentum toward a $100 valuation by 2025. Our analysis of the company’s financial performance, valuation metrics, and market positioning suggests this price prediction scenario warrants serious consideration.

Q1 2024 Earnings: The Foundation for 2025 Growth

General Motors delivered a compelling earnings performance that reinvigorated investor confidence and validated its operational execution. The company reported Q1 revenues of $43.01 billion, representing a 7.6% year-over-year increase and comfortably surpassing analyst expectations of $41.92 billion. More impressively, adjusted earnings per share reached $2.62, significantly exceeding the $2.08 consensus estimate.

The pricing environment during the quarter proved resilient. Contrary to initial concerns, average selling prices remained stronger than GM anticipated, reflecting robust demand for profitable vehicle segments. This performance prompted management to raise full-year guidance substantially—projected adjusted EPS now ranges between $9-$10, up from the prior $8.50-$9.50 band. Adjusted automotive free cash flow guidance was similarly revised upward by $500 million, with the company now expecting $8.5 billion to $10.5 billion in this metric for 2024.

Valuation Gap: Why GM Stock Appears Compressed

Perhaps the most striking aspect of GM stock’s current valuation is its disconnect from fundamental improvements. The company trades at a next 12-month price-to-earnings multiple of just 4.76x—a valuation that looks remarkably depressed even by the historically modest standards applied to traditional automakers. This represents a significant discount to GM’s three-year average PE of 6.45x and hovers near the low end of the historical range at 4.2x.

During the Q1 earnings call, CFO Paul Jacobson acknowledged the valuation disconnect, noting that GM’s PE multiple remains below historical averages and peer comparisons. “We’re not satisfied and know we have a lot of work to do on our valuation, and remain committed to improving it,” he stated. This admission from management underscores the opportunity that investors perceive in GM stock at current levels.

Navigating Key Headwinds: EV Losses and China Challenges

Despite the bullish fundamentals, legitimate concerns persist about GM’s medium-term trajectory. The company confronts several structural headwinds that help explain the valuation discount:

Electric Vehicle Economics: GM’s EV division continues to burn cash, pressured by Tesla’s aggressive pricing strategy and slowing demand growth. However, management projects EV volumes between 200,000-300,000 units in 2024, with variable profit expected in the second half and mid-single-digit margins anticipated for 2025.

International Market Pressures: While North America remains a profit engine, GM’s China operations faced headwinds in Q1, with the business transitioning from a historical profit center to a challenged market. CEO Mary Barra emphasized the company’s long-term China commitment despite analyst questioning about potential asset sales.

Cruise Self-Driving Division: The autonomous vehicle unit has underperformed expectations, requiring operational pauses and significant capital allocation. This cash-intensive business represents an uncertain claim on GM’s otherwise robust cash generation capacity.

Inventory Normalization: The company exited Q1 with 63 days of inventory, exceeding internal forecasts and potentially constraining pricing power if demand softens.

The Bull Case: Why Near-Term Concerns May Be Overstated

While these challenges deserve attention, several factors suggest current market pessimism may be pricing in worst-case scenarios. The U.S. economy continues to demonstrate resilience, with the Federal Reserve positioned to implement rate cuts later in 2024, potentially supporting automotive demand.

GM’s management confidence in achieving EV profitability by 2025—a critical test of the company’s transition strategy—should not be dismissed lightly. The company’s track record of execution in its core North American business supports this credibility. Additionally, if traditional internal combustion engine profits persist at current levels while EV losses narrow, the earnings trajectory could accelerate dramatically.

Analyst Consensus and Price Targets for GM Stock

The investment community’s positioning reflects this optimism-skepticism divide. Among the 22 analysts covering GM stock, 13 maintain “Strong Buy” ratings and 1 carries “Moderate Buy,” while 7 rate it a “Hold” and 1 a “Strong Sell.” This distribution suggests meaningful skepticism remains, creating asymmetric upside if the bull case proves correct.

The mean analyst target price stands at $52.60, but the street-high target reaches $96—which, if achieved, would represent more than a doubling from current levels. This outlier forecast provides a bridge to the psychological $100 level under moderately constructive assumptions.

2025 Price Prediction: Pathways to $100

The GM stock price prediction for 2025 hinges on several critical variables. If the company successfully navigates its EV transition while maintaining robust North American profitability, multiple expansion becomes inevitable. A rerating from 4.76x to even 6.0x PE—well below historical norms—would drive significant appreciation.

The confluence of depressed valuation multiples, demonstrated earnings power, and management execution in a cooperative macroeconomic environment positions GM stock as a plausible contender for $100. The path remains conditional on the company delivering on its medium-term EV profitability commitment, but current valuations offer a substantial margin of safety for investors willing to accept this risk-reward tradeoff.