Core Insights - General Motors (GM) stock has increased by 44% over the past six months, primarily due to a significant 162% rise in the P/E multiple, despite a slight 0.5% decline in revenue and a 47% drop in net margin [1][5]. Financial Performance - The stock rally was supported by better-than-expected earnings and strategic changes in the electric vehicle (EV) sector, alongside strong sales of high-margin trucks and SUVs [4]. - The anticipated tariff impact for 2025 has been reduced, which has further bolstered investor confidence [10]. Strategic Developments - GM announced a $43 million investment in Brownstown Township, Michigan, to manufacture lithium-ion battery packs for the Chevrolet Volt and other extended-range electric vehicles, marking the first major automaker-operated lithium-ion battery manufacturing plant in the U.S. [3]. - The introduction of an economical Bolt EV and layoffs, along with a $1.6 billion charge due to declining EV demand, reflect adjustments in GM's EV strategy [10]. - GM has directed thousands of suppliers to eliminate parts sourced from China, aiming to mitigate risks from geopolitical disruptions [10].
How GM Stock Gained 40%