General Motors (GM) Stock: Another 1,300 Layoffs at Factory ZERO — Is the EV Dream Waning?

TLDR

• GM has prolonged the production halt at its Detroit-based Factory ZERO electric vehicle plant, temporarily laying off approximately 1,300 employees through April 13.
• This production pause extends reductions first rolled out on March 16, and Factory ZERO has already cut more than 2,300 positions since the end of 2025.
• GM has reported $7.6 billion in losses across its electric vehicle initiatives, and has scaled back on multiple EV projects starting in late 2024.
• The automaker is shifting its focus back to gasoline-powered vehicles, and will increase heavy-duty truck output at a Michigan facility beginning in June.
• Barclays analyst Dan Levy has set a $105 price target for GM stock, which translates to an approximate 44% upside from current trading levels.

(SeaPRwire) –   General Motors (GM) has extended the production stoppage at its Factory ZERO EV plant in Detroit, placing roughly 1,300 workers on temporary layoff through April 13. This move prolongs a production halt that first went into effect on March 16.

General Motors Company, ticker GM

A GM representative stated that the plant would “make temporary production adjustments to align EV output with market demand,” adding that affected employees may qualify for supplemental pay and benefits under the GM-UAW national contract.

Factory ZERO manufactures the Chevrolet Silverado EV and GMC Hummer EV — two of GM’s most high-profile electric models. Both have posted lower-than-expected demand despite generating substantial early hype.

This is not the first round of cuts at the facility. Factory ZERO eliminated around 1,200 roles in late 2025, more than 1,100 additional positions in early 2026, and slashed output by 50% in January. This pattern points to a broader pullback from the EV targets GM laid out just a few years ago.

GM has now accumulated $7.6 billion in losses across its EV programs. The company has also scrapped its BrightDrop electric delivery van line, converted a Lansing plant to produce gas-powered Cadillac CT5 sedans instead of EVs, and abandoned plans to manufacture EV components at a Toledo transmission plant.

The expiration of the $7,500 federal EV tax credit in September 2025, per new rules from the Trump administration, has added further pressure. EV demand has cooled from its 2024 peak, weighed down by high price points and widespread concerns over charging infrastructure.

Back to Gas

GM is doubling down on its most profitable segments: gas-powered trucks and SUVs. The company announced it plans to raise heavy-duty truck production at a Michigan plant starting in June. Rival Ford (F) is taking a similar approach, ramping up output of its own gas-powered pickup lines.

Determining the optimal vehicle production mix is growing increasingly complex. Ongoing conflict in the Middle East has pushed gas prices higher, making EV demand harder to forecast as there is no clarity on how long this price pressure will last.

GM has issued 2026 adjusted EPS guidance of $11.00 to $13.00, with adjusted North America EBIT margins expected to rebound to the 8% to 10% range, up from 6.1% in Q4 2025.

The company repurchased roughly 91 million shares in 2025 and has authorized a new $6 billion share buyback program with no expiration date. Super Cruise revenue is projected to reach $400 million in 2026, up from $234 million in 2025.

What Analysts Say

Barclays analyst Dan Levy lowered his price target for GM to $105 from $110 but retained an Overweight rating. From the current stock price of $72.98, this target implies around 44% upside for investors.

Levy updated his financial models ahead of Q1 earnings results, cutting near-term performance estimates while remaining confident in GM’s longer-term profit potential. Q1 2026 tariff costs are projected to come in between $750 million and $1 billion.

On TipRanks, GM holds a Moderate Buy consensus rating, based on 15 Buy recommendations, three Hold ratings, and one Sell rating. The average analyst price target of $95.50 implies about 31% upside from current trading levels.

GM’s Q1 2026 earnings report is scheduled for release on or around April 27.