Seeking Alpha analysts debate how GM can regain momentum after a weak forecast
Seeking Alpha analysts split on GM's slide after a weak forecast: one blames the EV retreat and lost share, the other cites margins and cash flow.
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what happened
Shares of General Motors fell sharply this week after the automaker issued a forecast weaker than expected. The market is worried about rising costs and the company's product strategy. Seeking Alpha asked its analysts how GM could get back on track.
One contributor links the company's troubles to its scaling back of electric vehicles. GM booked a $6 billion charge tied to its EV plans. Its market share fell from 17.3% to 16.7% in the first half, and in China from 7.2% to 6.8%, while Washington ended the $7,500 EV tax credit in September.
A second analyst believes the course is correct. Adjusted operating income rose 22% in the third quarter, and GMNA margins climbed from 6.2% to 8.7%. The company expects about $15 billion in adjusted operating profit for 2026, and its free cash flow forecast was raised from $10 billion to $12 billion.
why it matters
For investors, the key question is whether margin gains can offset lost market share and the EV pullback. The shares remain sensitive to costs and product decisions, which matters for the wider auto sector too.
market impact
GM and US auto stocks: weak guidance and rising costs weigh on the shares, while margin gains offer support.
tags
instruments
sources
- SA Asks: How can General Motors get back on track? — Seeking Alpha, 24 October 2026 at 15:00 UTC
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