General Motors (NASDAQ:GM) is capturing investor attention this year, driven by its strong dividend, strategic partnerships, and a growing presence in electric vehicles. With Amazon (NASDAQ:AMZN) testing BrightDrop electric delivery vans in Europe, GM’s EV business is gaining fresh visibility, and analysts are optimistic about GM stock potential.
Amazon’s EV Pilot Boosts GM Stock
Amazon is piloting a dozen BrightDrop electric vans, joining a mix of Rivian (NASDAQ:RIVN), Ford (NYSE:F), and Mercedes-Benz (OTCMKTS:MBGYY) vehicles. This pilot, part of a $1 billion investment to electrify Amazon’s European delivery network, highlights GM’s BrightDrop platform and its growing role in commercial EV adoption.
GM’s forward dividend yield of 1.02% appeals to income-focused investors, while the EV angle positions GM stock for additional growth. With electric vehicle sales up 115% YoY in July 2025, GM continues to strengthen its position in a rapidly expanding market.
General Motors’ Financial Strength
GM manufactures vehicles across Chevrolet, GMC, Cadillac, and Buick, serving personal, commercial, and EV segments. The company pays a steady annual dividend of $0.54, with a forward dividend rate of $0.60, yielding 1.02%.
GM stock has risen 10.89% YTD and 24.31% over the past 52 weeks, currently trading around $58.86. With a market capitalization of $55.7 billion and a P/E ratio of 5.74x (forward P/E of 6.22x), GM offers strong value relative to sector medians of 17.04x and 18.14x, suggesting the stock is undervalued on traditional metrics.
Q2 2025 Performance
On July 22, 2025, GM reported second-quarter revenue of $47.1 billion, beating estimates despite a 1.8% YoY decline. Net income came in at $1.9 billion, while adjusted EBIT reached $3.0 billion, reflecting operational discipline. Adjusted EPS of $2.53 surpassed analyst forecasts by 5.9%.
The drop in net income, down 29.8% YoY, largely stems from $1.1 billion in tariffs and EV-related investments. Meanwhile, GM completed a $2 billion accelerated share repurchase, bringing the total shares retired under the program to 43 million, demonstrating commitment to shareholder returns.
Strategic Partnerships Driving Growth
GM is leveraging partnerships to strengthen its EV and AI initiatives. Collaborating with Nvidia (NASDAQ:NVDA), GM is developing AI-driven factory simulations and advanced manufacturing models. Partnerships beyond automotive include Malibu Boats (OTCMKTS:MBUU), integrating GM engines into popular wakeboats, showcasing GM’s technology adoption in niche markets.
Additionally, GM plans to invest $4 billion in U.S. manufacturing over two years, including $888 million in Tonawanda, New York, to expand V-8 engine production and EV capacity, supporting future growth.
Outlook for GM Stock
GM is set to release Q3 earnings on October 28, 2025, with analysts estimating EPS of $2.32, down 21.62% YoY. Full-year EPS estimates for 2025 are $9.44, a slight decrease from $10.60 in 2024, with 2026 projected at $9.66, a modest 2.33% growth.
Among 29 analysts covering GM, the consensus rating is “Moderate Buy,” with an average price target of $57.19, suggesting limited downside and potential for modest gains.
Why GM Stock Remains Attractive
GM stock combines steady dividends, undervaluation, and exposure to the growing EV market. Amazon’s BrightDrop pilot, ongoing investments in AI and manufacturing, and strategic partnerships enhance growth prospects. For investors seeking income and potential capital appreciation, GM stock remains a compelling choice for 2025 and beyond.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
