General Motors sets EV sales target with Honda, shares reflect cautious auto sentiment

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-26, 14:12.

General Motors Co (US37045V1008) is pushing ahead with its electric-vehicle partnership with Honda as legacy automakers face competitive pressure from Tesla on the NASDAQ and BYD in Hong Kong. The two companies are working on lower-cost EVs for global markets, according to recent company and media reports General Motors investor relations update on the Honda EV collaboration.

EV collaboration with Honda

General Motors Co and Honda Motor Co announced in prior releases that they plan to co-develop affordable electric vehicles using GM's Ultium battery platform, targeting North American and other key markets with compact crossovers and potential small car segments Reuters coverage of the GM-Honda affordable EV plan. The collaboration is designed to share development costs and accelerate the rollout of EVs priced below many current offerings, where demand is expected to grow.

According to Honda and GM, the companies have discussed production beginning around the middle of the decade, with volume models aimed at US and global customers who may not yet be ready to pay for higher-priced premium EVs Honda global press statement on the EV collaboration. The partnership builds on earlier joint work on fuel-cell technologies and autonomous driving, and reflects the broader industry trend of alliances among legacy manufacturers.

Peer pressure from Tesla and BYD

In the electric segment, General Motors competes with pure-play EV manufacturers such as Tesla Inc, which is a major constituent of the NASDAQ-100 index, and Chinese group BYD, one of the leading stocks in the Hong Kong market's auto basket Financial Times analysis on legacy carmakers versus Tesla and BYD. Analysts note that GM's strategy of combining internal combustion, hybrid and EV portfolios may support cash generation while funding the shift to electric.

Several Wall Street houses, including Morgan Stanley and Deutsche Bank, have published research on US automakers in recent months, often highlighting GM's progress on Ultium-based vehicles and Cruise autonomous operations as medium-term value drivers, while pointing out risks from cyclical demand and high capital spending Morgan Stanley commentary on GM and the US auto sector. These notes place GM alongside Ford and Stellantis in a peer group that is trying to defend margins against EV price competition.

How GM makes its money

General Motors Co generates most of its revenue by designing, manufacturing and selling cars and trucks under brands including Chevrolet, GMC, Buick and Cadillac, with a growing share from electric vehicles and related services such as software-enabled features and financing. It also benefits from its financial services arm and fleet sales.

Where GM stock trades today

General Motors Co shares trade on the NYSE under the ticker GM, with recent price data and intraday moves available from US exchange portals and financial data providers covering the S&P 500 and major US auto manufacturers.

This article was produced with AI assistance and editorially reviewed. Price and company figures without guarantee; prices and dates may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions carry risks up to and including total loss.