Legacy automaker General Motors (GM) is in for a fight, noted a report from the Wall Street Journal. It is poised to renovate the Renaissance Center in downtown Detroit, but it wants taxpayer money to contribute to the task. This is making for a difficult play, and investors are getting nervous. GM shares lost over 1.5% in Tuesday afternoon’s trading as a result.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The current plan calls for two of the Renaissance Center’s five towers to come down, as well as the “retail podium,” to be replaced with a “revamped” hotel and one office tower, as well as housing, a park on the waterfront, and a complete entertainment district. The project is set to cost $1.6 billion, the report noted, but will also call for $350 million in “public subsidies.”
And this, in turn, is raising hackles in Lansing, where the state legislature is wondering why one project in Detroit, run by a corporation, should get $350 million when there are roads so badly in need of repair that they are about one step away from just being turned into dirt. And with Michigan already pulling back on subsidies—film industry subsidies were lost a decade ago, the report noted—that leaves the funding sources for this new project in doubt.
Price Cuts, Revenue Cuts
Things got worse from there. Another report noted that Wells Fargo analysts pulled back on the price target for General Motors, cutting it from $38 per share to $35, noting several “challenges” in 2025. With fuel economy regulations rising at a time when inventories are also rising and the very real potential of tariffs on the horizon, it makes for a difficult time for General Motors.
Finally, an Inside EVs report asked a critical question about GM limiting its future by cutting off Cruise. The robotaxi program has had its share of bumps in the road and outright controversies for some time now. But by walking away from Cruise altogether, GM has shut the door on a branch of business that other competitors will be running with. That limits its potential growth down the line by keeping it out of an entire market.
Is GM Stock a Buy or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 10 Buys, four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 46.44% rally in its share price over the past year, the average GM price target of $57.94 per share implies 12.55% upside potential.
