The Motley Fool
25 Oct 2026, 06:05 UTC · 1h ago
GM Just Announced a $20 Billion Buyback. Tesla Trades at 350 Times Earnings.
Impact · against what's priced in
The news is largely a non-event for both stocks as it confirms existing market expectations. GM's buyback and cash flow guidance align with the modest margins already assumed by the market, while Tesla's slight delivery decline reinforces the existing bearish view on its core automotive business.
- GM+0.10
Already priced in
- The price assumes
A modest free-cash-flow margin of 6%
The increased free cash flow guidance of $11.5 billion to $12.5 billion supports the funding for the $20 billion buyback, but it remains consistent with the modest 6% margin the market already assumes.
What GM's price assumes · Sep 3
