General Motors (GM) stock is rising today on news that it has reached an agreement with Formula One Group (FWONK), owned by Liberty Media Corp, for the 2026 Formula 1 (F1) Grid. In what CNBC describes as a “breakthrough for the sport,” General Motors and its Cadillac brand will be forming the 11th team at the upcoming Formula 1 racing event, scheduled for 2026. Andretti Global, a team headed by noted former driver Marco Andretti, submitted the application that has since been approved.
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What’s Happening with General Motors Stock Today?
So far, news of this agreement has sparked momentum for both companies as their shares closed the day in the green. Despite some volatility over the past few months, General Motors has performed extremely well over the previous quarter, rising 24% over the past three months. Formula One Group, by contrast, has risen 14% for the same period.
While this development could benefit both stocks in the short term, it is likely to be a positive catalyst for General Motors as the highly anticipated event approaches in 2026. GM President Mark Reuss commented on the news, stating, “This is a global stage for us to demonstrate GM’s engineering expertise and technology leadership at an entirely new level.”
With that in mind, participating in the upcoming Formula 1 Grid could provide GM with new exposure and establish it not just as an automaker but as a builder of machines that can race at the highest levels. That type of achievement could give it an advantage over larger competitors, as the F1 Grid is highly exclusive and doesn’t easily admit new teams. While it may take some time for this news to boost GM stock, it is likely to happen as the race gets closer.
Is GM Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 10 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Even after a 116% rally in its share price over the past year, the average GM price target of $56.67 per share still implies 7% downside potential.
See more GM stock analyst ratings
It should be noted that although multiple analysts maintain Hold ratings on GM stock, two have recently upgraded their price targets, indicating an overall bullish attitude toward the company. Now that General Motors has secured a spot in the Formula 1 grid, more experts may start to adopt this mindset.
