General Motors (NYSE: $GM) Reports 17% Y0Y in Q12025 Sales General Motors (NYSE: NYSE:GM ) opened at $44.46 on April 4th, 2025, down 3.91%. The stock declined $1.80 in early trading. This came a day after Trump’s new 25% auto import tariffs took effect. In a report released on April 2nd, GM delivered 693,363 vehicles in Q1 2025, a 17% year-over-year increase. This marked the company's best Q1 since 2018. In Q1 2024, GM sold 594,233 units.
The automaker led in truck and compact SUV sales. Electric vehicle sales surged 94% to 31,887 units. GM currently remains the second-largest EV seller in the U.S, behind Tesla.
Other automakers posted mixed results. Ford's sales declined by over 5% on Thursday due to the tariffs.
GM’s growth came partly due to early consumer purchases ahead of the tariffs. Retail sales jumped in March, with buyers seeking to avoid expected price hikes.
Tariffs Threaten GM's Supply Chain
Trump’s 25% tariffs on imported vehicles started on April 3rd. According to the White House, tariffs on auto parts will begin no later than May 3.
Barclays analyst Dan Levy noted that only 52% of GM’s U.S sales in the first three quarters of 2024 came from domestic production. The rest came from plants in Mexico (30%) and other countries (18%). Levy added that GM depends on imports for models like the Equinox and Blazer. These are mostly built in South Korea and Mexico. The tariffs will likely increase production costs and squeeze margins.
Despite strong Q1 performance, GM faces near-term risks from global trade tensions and supply chain disruption.
Technical Analysis: Price at a Key Support Level.
GM stock has been retracing from its $61.24 52-week high in November 2024. It now tests a strong support level at $43, which aligns with the 78% Fibonacci retracement level. If GM bulls hold this key support level, they could trade bullish towards the $53 target resistance. The $53 high serves as a key resistance level of an internal structure high and March high.
However, a break below $43 may push the stock lower, with the next potential support at $39, which aligns with 100% retracement level.
Forecast: Watch for Breakout or Breakdown
GM's technical position is delicate. A rebound from $43 could start a continuation of the trend. But extended trade risks and import costs could drag it down further. The company’s stock has fallen over 11% year-to-date. Analysts on TipRanks rate it a Moderate Buy. The average price target is $62.17, offering a 42% surge from the current market price.
With the earnings date set to be released on Apr 29, 2025, this will provide more clarity on the overall market sentiment.
