Market Reacts to JPMorgan's Revised Outlook

General Motors Co. experienced a significant drop in its stock value, declining by more than 8% on Thursday. This downturn came after JPMorgan Chase & Co. adjusted its financial outlook for the automaker, reducing the stock price target from $64 to $53, while maintaining an Overweight rating.

Impact of Auto Tariffs on GM

The revision by JPMorgan's analysts was prompted by concerns over the impending auto tariffs imposed by United States President Donald Trump, set to take effect on April 2. These tariffs are expected to severely impact GM's profitability, with projections suggesting potential losses of up to $14 billion, which could eclipse the company's global profits.

At 10:28 am ET, GM's shares were trading at $46.535, marking an 8.68% decrease from the previous close.