GM Shares Take a Hit Following JPMorgan's Revised Outlook

In a startling turn of events, General Motors Co. witnessed its shares tumble by more than 8% this Thursday. This dramatic drop came in the wake of JPMorgan Chase & Co. revising its financial outlook for the automotive giant, slashing the stock price target from $64 to $53, while maintaining an Overweight rating.

The Tariff Trouble

The adjustment by JPMorgan's analysts was prompted by the looming auto tariffs, set to be imposed by United States President Donald Trump, effective April 2. These tariffs are expected to carve a significant dent in GM's profits, with projections suggesting a potential $14 billion hit. Such a figure could potentially wipe out GM's global profits entirely, according to the financial service firm.

By 10:28 am ET, GM's shares had fallen by 8.68%, trading at $46.535 each.