General Motors’s (NYSE: GM) stock is up 39% this year compared to the S&P 500 at 19%. Among the reasons is its retreat from the hugely expensive financial losses from EV vehicles and warranty write-offs, which are much lower than those of rival Ford (NYSE: F).
GM shares trade at $49, with a median analyst price target of $55. Ford’s trades at $11.19, and analysts have a consensus precise target of $12.98.
GM has held the unit sales lead over Ford for decades. Its position has strengthened as Ford’s has weakened. In 2023, GM’s US market share was 16.89%, Toyota’s was 14.46%, and Ford’s was 13%.
GM also benefits from the fact that its cars are better built than those of Ford and Toyota (NYSE: TM). In the latest JD Power Initial Quality Survey, Chevy ranked No.2, Buick No.5, the Ford brand No. 9, and Toyota No.16.
It is possible that Ford’s well-publicized number of car problems and high warranty costs simply make GM look better.
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