Goldman Sachs has adjusted its price target for General Motors (GM, Financial), reducing it from $73 to $63 while maintaining a Buy rating on the stock. This revision reflects a more cautious outlook on the auto sector, motivated partly by challenges in transferring tariff costs to consumers amid a general decline in demand. Despite potential mitigations through strategic pricing, the analyst highlights that tariffs could negatively impact both automakers and their suppliers.
Furthermore, Goldman Sachs has factored into its forecasts the rising influence of Chinese automobile manufacturers and the slower than anticipated transition to electric vehicles in the United States and possibly Europe. These elements contribute to the revised expectations and underline broader trends impacting the automotive industry.
