TLDR
- GM stock rose about 5% after announcing supervised public road testing of its new automated driving system in California and Michigan.
- More than 200 development vehicles will be on highways with trained safety drivers, backed by over one million miles of real-world data.
- Bank of America issued a bullish note on GM, pointing to its truck margins and a “tech-like” pivot toward recurring digital revenue.
- GM’s OnStar deferred revenue backlog is expected to hit $7.5 billion by end of 2026.
- GM also plans to unbundle its Super Cruise tech as a standalone option for 2027 model year trucks.
General Motors started supervised public road testing of its advanced automated driving system this week in California and Michigan. The news, combined with a bullish note from Bank of America, pushed GM stock up around 5% on Monday.
The automated system has been trained on millions of real-world miles and stress-tested in simulation. GM says it is now ready to move from controlled development into live traffic testing.
More than 200 development vehicles will be deployed on highways. Trained safety drivers will be behind the wheel at all times, ready to take over if needed.
GM’s data collection fleet has already logged over one million miles across 34 states. That data is now feeding the AI model behind the new system.
GM stock was trading near the $76 range on Monday. Year-to-date, the stock is still down around 13%, but Monday’s move pushed it back above its 200-day moving average — a shift that technical traders tend to watch closely.
BofA Turns Bullish on GM
The autonomous driving news wasn’t the only catalyst. Bank of America put out a positive research note after GM’s management spoke at the Bank of America Global Automotive Summit last week.
CFO Paul Jacobson told the summit that GM expects its deferred revenue backlog from software and digital services — specifically its OnStar ecosystem — to reach $7.5 billion by end of 2026.
BofA analysts flagged this as a “tech-like” pivot that could expand long-term margins. The firm called out GM’s truck margins and undervalued competitive position as reasons to stay bullish.
GM also announced it will unbundle its Super Cruise autonomous driving technology for 2027 model year trucks, offering it as a standalone option. BofA sees this as a move that could accelerate digital revenue through the rest of 2026.
Trucks Still Driving the Numbers
The GMC Sierra and Chevrolet Silverado remain central to GM’s profit story. These models are generating roughly $17,500 per unit — nearly double GM’s corporate average.
The Trump administration’s rollback of strict emissions standards has also given GM more room to focus on its high-margin ICE trucks and SUVs while EV demand cools.
GM’s $6.0 billion share buyback program and a 20% dividend increase authorized earlier this year continue to sit in the background as indicators of management’s confidence in cash flow. The stock carries a 0.95% dividend yield.
Wall Street’s overall consensus on GM sits at “Moderate Buy,” based on 14 Buy, four Hold, and one Sell recommendation. The average price target of $95.76 points to over 25% upside from current levels.
GM’s longer-term autonomous driving plans include an eyes-off driving system for the all-electric Cadillac Escalade IQ, expected to launch by 2028 on highways before expanding to full driveway-to-driveway capability.
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