Zinger Key Points
- General Motors shares are trading lower by 8.7% since Monday's open.
- The newly imposed 25% tariff on imported vehicles and parts could significantly impact the company’s costs and sales.
- Feel unsure about the market’s next move? Copy trade alerts from Matt Maley—a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now.
General Motors Co GM shares are trading lower by 8.7% to $46.40 since Monday’s open and are lower by 1.00% Friday. The stock has been volatile in recent sessions after analysts warned that the newly imposed 25% tariff on imported vehicles and parts could significantly impact the company's costs and sales.
JPMorgan's Ryan Brinkman also slashed GM's price target by 17% to $53 from $64, citing increased earnings risk. Major indexes are also lower following a greater-than-expected rise in the PCE price index in February while personal spending missed estimates.
What To Know: Although GM assembles many of its vehicles in the U.S., it remains highly exposed to global supply chains. The company imports a substantial portion of its auto parts, meaning tariffs could raise production costs by $3,000 to $8,000 per vehicle.
Additionally, GM relies on foreign-built models such as the Buick Envision from China and various Cadillac models from Canada and Mexico, which could now face steep price hikes.
With its electric vehicle strategy dependent on sourcing batteries and key components from overseas, GM could see margin compression if it cannot pass higher costs onto consumers.
Analysts warn that weakened demand and potential retaliatory tariffs could further strain GM's profitability.
Read Also: What’s Going On With Lululemon Shares Friday?
How To Buy GM Stock
By now you're likely curious about how to participate in the market for General Motors GM – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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