GM's September Drop Reflects Multiple Pressures and Valuation Gap
General Motors closed at $80.57 on September 24, down 3.82% that day and 7.2% for the month to date. The decline followed a truck-delivery warning, the Fed's first rate hike since 2023, concerns about Chinese automakers entering the U.S., and a forecast showing GM losing U.S. market share. GM's forward P/E has fallen about 22% in 2026 even as its expected earnings rose 26%.
General Motors ended Sept. 24 at $80.57, a 3.82% daily decline and 7.2% lower for the month. The drop coincided with several pressures: the CFO's warning that pickup changeovers would reduce truck deliveries by about 35,000, the Fed's quarter-point increase to 3.75%-4.00%, and a broad Sept. 18 selloff.
A Cox Automotive forecast projected GM's U.S. share at 16.7% for the quarter, down from 17.4%, while TD Cowen's Itay Michaeli called Chinese-entry fears overdone. GM's next earnings report is scheduled for Oct. 20. Its forward P/E fell from 7.36x to 5.76x as expected normalized EPS rose from $11.06 to $13.99.
GM's share decline and valuation gap could affect investors, employees, suppliers, dealers, and car buyers. A lower multiple may raise borrowing costs or slow factory and technology investment, potentially influencing jobs and vehicle availability. If market-share losses continue, consumers may see more hybrid choices from rivals, while GM may adjust pricing or incentives. The Fed's rate path and Chinese-entry debate may also shape affordability and competition, though outcomes remain uncertain.