Detroit — General Motors is poised to close 2025 as the top-performing U.S.-traded automaker stock, with its shares soaring more than 55% to record highs—marking their best annual performance since the company's emergence from bankruptcy in 2009. The rally, which includes five consecutive months of gains, has significantly outpaced rivals Ford, Tesla, and Stellantis, driven by robust earnings, aggressive share buybacks, and a favorable regulatory shift.

GM's surge is rooted in what CEO Mary Barra has long argued is a market undervaluation of the company's consistent financial performance. "Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to set GM apart," Barra stated during the last earnings call. This confidence is backed by a track record of beating Wall Street earnings estimates in 19 of the past 20 quarters.

A Convergence of Catalysts: Execution and Environment

Several key factors have converged to propel GM's stock. Internally, the company has demonstrated disciplined strategic execution in North America, managing incentives, inventory, and average transaction prices to deliver strong margins. This operational rigor has enabled significant cash returns to shareholders, with CFO Paul Jacobson affirming that buybacks remain a top priority as long as the stock is perceived as undervalued.

Externally, the regulatory landscape has shifted favorably. The Trump administration's relaxation of U.S. fuel economy standards and removal of related penalties has benefited the automaker, which UBS analyst Joseph Spak notes is "effectively a regional (North America) automaker." Concurrently, an industry-wide slowdown in electric vehicle sales has reduced near-term capital pressure, allowing GM to focus on its profitable core business—a critical advantage in the current competitive ecosystem.

Leadership Moves and Wall Street's Bullish Stamp

Amid the stock's ascent, Barra has exercised options and sold approximately 1.8 million shares worth over $73 million this year, though she retains a substantial stake valued above $35 million. This activity has not dampened Wall Street's enthusiasm. Major firms including Morgan Stanley and UBS have issued upgrades and raised price targets, with UBS naming GM its top auto pick for 2026 and setting a $97 price target.

The stock's largest single-week jump of 19.3% followed October's third-quarter earnings report, where GM beat expectations and raised its full-year guidance. Analysts highlight the company's resilience and shareholder returns as key differentiators in the high-stakes race among legacy automakers. As 2026 approaches, GM appears well-positioned to continue its strategic momentum, leveraging its regional strength and financial discipline in a transformed regulatory environment.