GM is set to report third-quarter results on Oct. 21 after announcing a $1.6 billion charge related to its EV realignment, which includes non-cash impairments and contract settlements.
Bank of America’s research arm cut its price target on General Motors (GM) to $61 from $62 while maintaining a ‘Buy’ rating ahead of the company’s third-quarter (Q3) results on Oct. 21.
The analyst said GM’s Q3 earnings before interest and taxes (EBIT) forecast is 3.5% above consensus, reflecting stronger near-term profitability despite recent adjustments to its longer-term EV strategy.
The price target revision follows GM’s announcement that it will take a $1.6 billion charge in Q3 after reassessing its electric vehicle plans in response to recent U.S. policy changes, including the termination of key federal tax credits for EV buyers and a rollback in emissions regulations. The automaker said it now expects EV adoption to slow and is adjusting its capacity and investments accordingly.
GM said the charge includes $1.2 billion in non-cash impairments tied to EV capacity adjustments and $400 million in contract cancellation fees and commercial settlements related to earlier EV-related commitments. The company said it may recognize additional cash and non-cash charges in future quarters as it continues to review its EV and battery-component manufacturing footprint.
“The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment,” GM said in a statement to Reuters. The automaker added that the changes will not affect its current retail EV lineup under the Chevrolet, GMC, and Cadillac brands.
GM said the amounts will be reflected as adjustments in its non-GAAP financial results for the quarter ended Sept. 30, 2025. The company said the reassessment of its EV investments, including in its battery-component operations, remains ongoing.
Analysts at BofA said both GM and Ford have seen consensus estimates rise since their second-quarter (Q2) results, but noted that 2026 forecasts were revised lower to reflect reduced North American volumes for GM.
The Detroit automaker has also faced ongoing trade-related headwinds, having taken a $1.1 billion tariff hit last quarter and expecting a total impact of $4 billion to $5 billion this year, though it aims to offset about 30% of the cost through efficiency measures.
On Stocktwits, retail sentiment for GM was ‘extremely bullish’ amid a 32% surge in 24-hour message volume.
One user reacted negatively to the $1.6 billion announcement, signaling a setback for the company.
Another user said GM’s latest move highlighted ongoing difficulties in its electric vehicle transition and expressed doubt about the company’s ability to handle the shift.
GM’s stock has risen 8% so far in 2025.
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