General Motors Faces Margin Pressure Ahead of Q3 Earnings Amid Tariff Headwinds
General Motors (GM) has seen a sharp rebound since April as investors reassessed risk premiums, particularly around tariff impacts. Despite underperforming the broader market earlier in 2025, the stock now trades NEAR historical peak multiples. Operational execution remains strong, with market share gains and margins aligning with targets. However, weaker cash conversion and tariff pressures loom.
With Q3 earnings due October 21, analysts anticipate a soft bottom line due to tariffs. Potential upside hinges on mitigation efforts paving the way for a stronger second half. Valuation concerns persist, leaving the stock at a Hold rating for now.