General Motors Company (NYSE:GM)’s strategy of leaning on its core gasoline-powered vehicle business while recalibrating its electric vehicle ambitions is helping the automaker navigate a challenging macro and supply-chain environment, according to Wedbush analysts.
Wedbush on Thursday raised its 12-month price target on GM to $95 from $75 and reiterated an “outperform” rating, citing improving cash flow prospects and what it described as near-perfect execution in managing supply-chain risks heading into 2026.
The brokerage said GM is balancing its internal combustion engine (ICE) and EV strategies more effectively than many rivals, at a time when demand for electric vehicles in the US has cooled. Wedbush expects EVs to make up about 10% of the US auto market in fiscal 2026, flat year on year, prompting GM to scale back EV capacity across its supply chain and refocus on higher-demand, higher-margin ICE models.
“Barra & Co. are prepared for all options on the table,” Wedbush wrote, adding that ICE models are likely to account for a larger share of GM’s business as the company prioritizes margin stability and free cash flow generation.
The analysts contrasted GM’s approach with that of Ford, which recently recorded a $19.5 billion special charge tied to its EV pullback. GM, by comparison, took a $1.6 billion one-time charge last quarter after adjusting its EV plans earlier, including shifting its Orion plant from EV production back to ICE vehicles. Wedbush noted GM reduced its EV footprint by about 30% in the past quarter as it sought to align inventory with softer demand.
Beyond product strategy, Wedbush highlighted GM’s efforts to mitigate tariff and geopolitical risks. The company has directed thousands of suppliers to move supply chains away from China by 2027, aiming to source most vehicle parts from North America while remaining open to partnerships with other Asian countries for items such as battery materials and chips.
GM’s roughly $4 billion investment in US facilities is also expected to help offset potential tariff impacts, with plans to produce an additional 2 million vehicles domestically. Wedbush noted that GM has already factored in a 35% offset to its estimated gross tariff exposure of $3.5 billion to $4.5 billion.
Looking ahead to 2026, Wedbush said GM’s priorities include returning to historical North American EBIT margins of 8% to 10%, improving EV profitability, expanding software and services, and continuing operational optimization.
“We believe the company is taking the right approach to navigate choppiness in its supply chain while progressing key initiatives,” the analysts wrote.