GM: Will Political Risk Undermine A Seasonal Surge?
- Instrument: General Motors (GM)
- Average Pattern Move: +6.28%
- Timeframe: 26 May – 8 June
- Winning Percentage: 80.00%
You may not realize that GM has one of the strongest bullish seasonal patterns across US mega-cap auto stocks during late May and early June. As the political noise surrounding EV tariffs rises again, we want to analyze the data in more detail.
The chart shows you the typical development of GM’s stock price from 26 May to 8 June over the past 10 years. The stock has risen in 8 out of those 10 years, with an average return of +6.28% and a stellar annualized return of +475.87%. The consistency of this trend—8 wins out of 10—highlights a reliable short-term window for potential outperformance.
(Click on image to enlarge)
Macro Spotlight: GM’s EV Bet Faces a Political Headwind
General Motors’ commitment to EV leadership is clear. Its Ultium battery plant outside Nashville is one of the most advanced in North America—automated, vertically integrated, and capable of delivering battery cells at a pace that even outpaces Tesla’s US output. GM is targeting its own battery supply chain, deploying prismatic cells, new chemistries, and even replacing modules with structural battery packs to slash costs and compete with China’s BYD and Tesla.
However, politics may intervene. Trump’s 25% auto tariffs are already hitting GM’s Mexico-built EVs, such as the Equinox and Blazer, which undercut Tesla on price. A full repeal of Biden’s EV tax incentives could remove the $7,500 subsidies that help GM close the cost gap with gas-powered vehicles.
Technical Perspective:
From a technical standpoint, GM’s recent rally may be sustained if the broader market stabilizes. The chart shows a rising window from early May and key support for that gap higher is at 48.00, marked on the chart below.
(Click on image to enlarge)
Trade Risks:
The moves in GM’s stock will depend heavily on earnings momentum and trade policy shifts. Further tariff announcements from the US could derail sentiment, while any signs of political compromise on EV tax credits may ease the pressure. Investors should also monitor EV demand trends and updates from GM on production cost targets for key models.
Video Length: 00:02:16
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