GM's third-quarter earnings saw adjusted diluted EPS of $3.73 beat the LSEG consensus and the company announce a $20 billion share repurchase program with no expiration. The stock fell over 9% during Oct. 20 trading.
GMNA's breakeven point of about 10 million-11 million units is drastically lower than it was under old GM.
Bears
GM may have to see a US recession to prove it can do much better than old GM before the market will award the stock a higher P/E multiple. The recession came in 2020, and may again in 2026 or 2027, but the P/E multiple well after the downturn remains uncertain.
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under three segments: GM North America, GM International, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its US market share leadership in 2022, after losing it to Toyota due to the chip shortage in 2021. 2025 US share was 17.4%, up 60 basis points from 2024. The Cruise autonomous vehicle arm, which GM now owns outright, previously operated driverless geofenced AV robotaxi services in San Francisco and other cities, but after a 2023 accident, GM decided to focus on personal AVs. GM Financial became the company's captive finance arm in 2010 via the purchase of AmeriCredit.