TLDR
- GM has extended downtime at its Factory ZERO EV plant in Detroit, laying off around 1,300 workers until April 13.
- The pause builds on cuts dating back to March 16, with Factory ZERO having already shed over 2,300 jobs since late 2025.
- GM has recorded $7.6 billion in losses on its EV programs and pulled back from multiple EV projects since late 2024.
- The company is shifting focus back to gas-powered vehicles, boosting heavy-duty truck production at a Michigan plant from June.
- Barclays analyst Dan Levy holds a $105 price target on GM, implying roughly 44% upside from current levels.
General Motors (GM) has extended downtime at its Factory ZERO EV plant in Detroit, temporarily laying off around 1,300 workers until April 13. The move extends a production pause that started on March 16.
A GM spokesperson said the plant would “temporarily adjust production to align EV production with market demand,” adding that impacted employees may be eligible for sub pay and benefits under the GM-UAW national contract.
Factory ZERO builds the Chevrolet Silverado EV and GMC Hummer EV — two of GM’s most high-profile electric models. Both have seen slower-than-expected demand despite early buzz.
This is not the first round of cuts at the plant. Factory ZERO shed around 1,200 jobs in late 2025, more than 1,100 in early 2026, and cut output by 50% in January. The pattern points to a broader retreat from the EV targets GM set just a few years ago.
GM has now recorded $7.6 billion in losses across its EV programs. The company has also canceled the BrightDrop electric delivery van, switched a Lansing plant to produce gas-powered Cadillac CT5 sedans instead of EVs, and dropped plans for EV parts at a Toledo transmission plant.
The end of the $7,500 federal EV tax credit in September 2025, under new rules from the Trump administration, has added pressure. Demand for EVs has cooled since 2024 highs, hit by high prices and concerns about charging infrastructure.
Back to Gas
GM is leaning back into what makes money: gas-powered trucks and SUVs. The company said it plans to increase heavy-duty truck production at a Michigan plant starting in June. Rival Ford (F) is making a similar move, ramping up its own gas-powered pickup output.
Picking the right vehicle mix is getting more complicated. A conflict in the Middle East has pushed gas prices higher, making EV demand harder to forecast since nobody knows how long that pressure will last.
GM guided for 2026 adjusted EPS of $11.00 to $13.00, with North America EBIT-adjusted margins expected to recover to the 8% to 10% range, up from 6.1% in Q4 2025.
The company repurchased around 91 million shares in 2025 and has authorized a new $6 billion buyback with no expiration. Super Cruise revenue is projected to grow to $400 million in 2026, up from $234 million in 2025.
What Analysts Say
Barclays analyst Dan Levy trimmed his price target to $105 from $110 but kept an Overweight rating. From the current price of $72.98, that target implies around 44% upside.
Levy updated his models ahead of Q1 results, trimming near-term estimates while keeping conviction in GM’s longer-term earnings power. Q1 2026 tariff costs are expected to run $750 million to $1 billion.
On TipRanks, GM holds a Moderate Buy consensus rating, based on 15 Buys, three Holds, and one Sell. The average price target of $95.50 implies about 31% upside from current levels.
GM’s Q1 2026 earnings are expected on or around April 27.
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