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Morgan Stanley GM Upgrade, EV Stocks Downgraded

by Victoria Sterling -Business Editor

Summary of General Motors (GM) news​ – ‍December 11, ​2025

Here’s a summary of ‌the key takeaways from the​ provided text regarding general Motors:

* ⁤ EV Slowdown & Charge: ⁣GM took a $1.6 billion special charge in Q3⁢ 2025⁤ due to a slowdown in EV adoption. ​This included $1.2 billion in non-cash impairments ⁢adn $400⁤ million in supplier cancellation costs, representing a “right-sizing” of EV assets. The‍ slowdown is attributed to changes in US government policy, specifically the expiration of EV tax incentives ⁣and ‍reduced emissions regulations.
* US Production Focus: GM is investing $4 billion in ‌U.S. operations to realign​ its supply chain and​ mitigate future tariff exposure. This‌ is considered a smart move by Morgan Stanley. GM is more exposed to tariffs than Ford due to importing parts and vehicles from multiple countries.
* Analyst ‌Confidence: ‍Goldman ‍Sachs raised ⁣its 12-month price ​target for GM to ​$93 while maintaining a ‘Buy’ rating, ⁤reflecting growing bullish sentiment‌ on Wall Street.
* Strong Q3 Results: GM reported $48.6 billion in revenue for Q3, exceeding⁢ expectations ​of $45.26 billion. Adjusted pre-tax profits were $3.38 billion, also surpassing analyst estimates​ of $2.72 billion.⁤ GAAP ⁤net income was $1.3 billion.
* Raised Guidance: GM raised its 2025 guidance, indicating positive outlook despite the EV slowdown.

In‌ essence, GM ⁢is adapting to a slower-than-expected EV transition by adjusting its production capacity, strengthening its domestic production, and benefiting from strong financial performance in other areas. analysts are optimistic about the⁣ company’s future.

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