General Motor’s Battery Pivot Could Change Everything for GM Stock

General Motors (GM) is back in the spotlight following claims that the auto manufacturer may be reconsidering its approach to electric vehicle (EV) battery technology. Most manufacturers are betting on cheaper lithium-iron-phosphate (LFP) batteries; however, GM seems to believe that lithium-manganese-rich (LMR) batteries will eventually be the way forward.

The matter is relevant as battery cost efficiency is considered one of the key factors when developing an EV manufacturing strategy. As competition becomes fiercer, automakers have been looking into ways to make electric cars cheaper while retaining sufficient range and performance. It would seem that GM's statements indicate that LMR chemistry may provide an edge over LFP in the long run.

About General Motors Stock

General Motors Corporation is one of the world's leading carmakers. Vehicles manufactured by GM include models produced under the Chevrolet, GMC, Cadillac, and Buick brands. The company has a market cap of $73.5 billion.

GM's stock has posted an impressive run in the past year. It recently traded around $84, having gained close to 76% compared to its lowest price within the year of $47.63. The stock is just slightly ($3.68) below its highest annual level of $87.62. GM significantly outperformed the stock market in the year-to-date period due to high profitability, aggressive share buybacks, and capital allocation.

One of the most appealing characteristics of GM stock is its valuation multiples. The company trades for merely 6.3x forward and 7x trailing earnings multiples. Additionally, its price/sales and price/book ratios of 0.39x and 1.13x look quite attractive relative to those of automotive/industrial peers. Also, the PEG ratio of 0.41 indicates that analysts' forecasted earnings growth has not been adequately priced in yet.

Moreover, GM pays an annual dividend of $0.18 per share. The next quarterly payout of $0.045 is scheduled for June 18, 2026.

General Motors Beats on Earnings

In Q1 2026, GM's revenues came in at $43.6 billion, whereas net income attributable to GM shareholders amounted to $2.6 billion. Adjusted EBIT of $4.3 billion also demonstrated GM's capacity to post healthy earnings despite ongoing trade wars and uncertainties plaguing the industry.

Also, management announced an update to the company's financial guidance. GM now sees its adjusted EBIT for 2026 in a range of $13.5 billion–$15.5 billion vs. previous guidance of $13 billion–$15 billion. Adjusted EPS guidance was revised to the new range of $11.50–$13.50, benefiting from a favorable ruling made by the U.S. Supreme Court, which cut expected tariff costs.

Apart from earnings, GM is also being talked about regarding its batteries. According to Reuters, GM's battery chief, Kurt Kelty, stated that LMR batteries could end up being used in future high-volume EVs. Even though the company intends to produce LFP batteries in its Tennessee plant, it seems those will eventually be employed for energy storage purposes rather than automotive applications.

The move is notable as it puts GM onto a different trajectory than its rivals Tesla (TSLA), Ford (F), and Rivian (RIVN), who are shifting towards LFP batteries. In case LMR batteries demonstrate better energy density and attractive cost, GM might be able to get ahead of competitors.

What Do Analysts Expect for GM Stock?

Despite its rally, Wall Street has been positive about GM's prospects with a “Moderate Buy” rating consensus. Analysts now carry a consensus price target of $94.04, compared to the current stock price of $84. At $94.04, its mean price target implies roughly 14% upside from the current price. Moreover, the highest target of $131 gives GM another 59% potential upside should the company continue to execute successfully in terms of profitability and EV strategy.