UBS reaffirmed its $97 price target on General Motors on Friday, just hours after the company announced an additional $6 billion impairment would affect its upcoming financial results.
GM stated in a regulatory filing on Thursday that it has “proactively reduced EV capacity” as demand in North America began to slow, following the “termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations.”
According to UBS analyst Joseph Spak, these charges are “not surprising,” as the legacy automaker proceeds with EV business restructuring.
$1.6 Billion Hit and Following Charges
In October, ahead of its third-quarter earnings report, the Detroit automaker announced that it would take a $1.6 billion hit as it was restructuring its business, after the termination of the federal EV tax credit.
By then, the company stated that it may incur additional significant cash and non-cash charges in the future, which could impact its financial results and cash flows — something it has reiterated on Thursday as well.
In a new research note, obtained by PriceTarget, Spak reminded that GM had already indicated that there would be more charges, citing “BrightDrop actions” as an example of those.
The company recently announced that it was halting production of its fully electric, commercial delivery van.
Last year, GM had several models being cut from production, with contracts terminated and related layoffs.
About 1,700 GM employees have been affected in October alone, including those who worked at its CAMI plant in Canada, producing the BrightDrop vans.
GM isn’t the only traditional automaker experiencing slow demand for electric vehicles; many are also shifting their focus back to ICE and hybrid models.
Ford is in a similar scenario — last month, it announced that it would face charges of over $19 billion, as it cancelled plans for several EV-related projects.
Despite recognizing that they’re “not perfectly analogous,” the analyst compared GM‘s total $7.6 billion charge (including both October’s $1.6 billion and the most recent $6 billion) to Ford’s write down.
By then, reacting to the Jim Farley-led company’s announcement, Spak wrote that it was a “bold action” that likely removed “years of future losses.”
“So, while the news that there are further charges should not be surprising, investors may take issue with the size as it could impact the magnitude of share repurchases,” Spak said.
Stock Performance
Spak’s reiterated $97 price target on GM‘s shares implies a 13.9% upside potential on the stock, based on Thursday’s close at $85.13.
The target was last hiked from $85 on December 15, when the stock was trading at around $80.
Despite the difficult market conditions, several Wall Street analysts have increased their price targets on General Motors in the past month — with both Wedbush and Piper Sandler setting a $98 target on the shares.
The company’s stock started 2025 at around $50 and fell to a yearly low of $41.28 in early April amid tariff concerns. It has since doubled in value.
Shares reached a new all-time high of $83.68 on December 22, which was then surpassed on Thursday’s trading session, peaking at $85.18.
The stock closed just five cents below that.
However, it dropped 2% in after-hours trading following an impairment announcement.
As of press time, the Detroit automaker’s shares were trading nearly 3% lower at $82.65 on Friday’s market session.
EV Sales in 2025
General Motors’ EV sales declined by 43% in the final three months of 2025, after a steady increase in the first two quarters.
The total electric vehicles sold in 2025 have increased by 48% year over year, however, making GM the second best-seller in the EV segment last year, just after Tesla.
The company sold 169,887 electric vehicles last year, for a total of 2.85 million — representing a share of just 6% of the total units registered by the brand in 2025.
