General Motors Surges as Wall Street Backs Cost Pivot

General Motors ( (GM) ) has risen by 7.78%. Read on to learn why.

General Motors shares rose 7.78% over the past week as investors looked past short-term volatility around job cuts and focused instead on the automaker’s drive to become leaner and more tech-centric. While the stock did slip on the specific news that GM will cut 500–600 salaried IT roles worldwide to protect margins amid soft U.S. sales, the broader weekly move reflects growing confidence that these cost actions are part of a larger restructuring to support long‑term profitability rather than simple downsizing.

The latest round of layoffs targets GM’s information technology department, where management is “modernizing” operations and reshaping teams to prioritize software, computing and artificial intelligence capabilities. This follows earlier reductions, including hundreds of salaried cuts and thousands of blue‑collar layoffs tied to weaker demand for electric vehicles, an area where GM has already taken $8.7 billion in writedowns. At the same time, the company faces cost pressures from geopolitical tensions, such as the war in Iran, and a still‑uncertain outlook for EV adoption, making efficiency gains and tech investment critical.

Despite these headwinds, Wall Street sentiment remains constructive. Analysts carry a Moderate Buy rating on General Motors, with an average price target around $96 per share that implies meaningful upside from current levels. Recent bullish calls from firms like Wedbush and Mizuho, which see GM as a beneficiary of software- and AI‑driven transformation, helped support this week’s 7.78% climb. For investors, the story now centers on whether GM can turn aggressive cost controls and a shift toward higher‑margin tech features into sustained earnings growth, even as it scales back more speculative parts of its EV push.