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General Motors' Q4 US Sales Fall 7% Y/Y: Is EV Weakness the Reason?

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Key Takeaways

  • General Motors delivered 703,001 U.S. vehicles in Q4, down 7% Y/Y, with electric vehicle sales dropping 43%.
  • EV weakness followed record Q3 demand ahead of tax credit expiration.
  • General Motors still led the U.S. auto market in 2025, posting 6% full-year sales.

General Motors Company (GM - Free Report) delivered 703,001 vehicles in the United States in the fourth quarter of 2025, representing a 7% year-over-year decline that broadly mirrored overall industry trends. Electric vehicle sales dropped 43% year over year to 25,219 units, following record EV volumes in the third quarter due to accelerated purchases ahead of the federal tax credit expiration. During the fourth quarter, sales of the Blazer EV, Equinox EV and HUMMER EV fell sharply 77%, 71.7%, and 49.8%, respectively.

Sales across GM’s core brands also weakened, with Buick, Cadillac, Chevrolet, and GMC posting year-over-year declines of 10.5%, 16.7%, 6.7% and 3.7%, respectively, in the fourth quarter. Meanwhile, GM Envolve recorded its strongest fourth-quarter fleet sales performance since 2018.

Despite the softer fourth-quarter results, General Motors led the U.S. auto market in 2025, reporting a 6% increase in full-year sales, supported by gains across several segments of its portfolio. 

The company retained its position as America’s leading full-size pickup manufacturer for the sixth consecutive year, as the Chevrolet Silverado and GMC Sierra achieved their highest combined sales in two decades. General Motors also remained the leader in the full-size SUV category for the 51st straight year and ranked as the second-largest EV seller in the United States for 2025. GM sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

How Did GM Fare Against Rivals in Q4 Sales Performance?

In the fourth quarter of 2025, Tesla, Inc. (TSLA - Free Report) sold 418,227 vehicles (comprising 406,585 Model 3/Y and 11,642 other models), down 16% from the corresponding quarter of 2024. For the full year, Tesla’s deliveries totaled roughly 1.64 million vehicles (comprising 1.58 million units of Model 3/Y and 50,850 other models). That denotes a decline from nearly 1.8 million vehicles that Tesla sold in 2024.

In the fourth quarter, Ford Motor Company (F - Free Report) sold 545,216 vehicles in the fourth quarter, which increased 2.7% year over year and outpaced the broader industry. For the full year, Ford reported a 6% rise in total sales to 2,204,124 vehicles, lifting its overall market share to 13.2%. Meanwhile, Ford sold 69,887 electrified vehicles, including 55,374 hybrids and 14,513 electric models, representing a 9.5% year-over-year decline.

GM’s Price Performance, Valuation and Estimates

General Motors has outperformed the Zacks Automotive-Domestic industry in the past six months. GM’s shares have gained 57.5% compared with the industry’s growth of 48.7%. 

Zacks Investment Research
Image Source: Zacks Investment Research

 
From a valuation perspective, GM appears undervalued compared to the industry. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.42, lower than the industry’s 3.4. 

Zacks Investment Research
Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for GM’s 2025 EPS has moved up 18 cents in the past 60 days. The Zacks Consensus Estimate for GM’s 2026 EPS has moved up 14 cents in the past 30 days. 

 

Zacks Investment Research
Image Source: Zacks Investment Research


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