General Motors falls; Barclays downgrades on tariff risk, weak US manufacturing presence

Brokerage Barclays downgrades U.S. automaker General Motors GM.N to "equal weight" from "overweight", cuts PT to $40 from $70

New PT implies 12.8% downside to stock's last close

Shares of GM fall 1.4% to $44.5 premarket

Brokerage says the downgrade was due to concerns about near-term earnings pressure from tariffs

Brokerage believes GM is vulnerable to the auto tariffs because nearly half of the vehicles it sells in the U.S. are assembled outside the country

GM also faces risks in meeting its EV targets, as its affordable EVs are made in Mexico and may be subject to tariffs, says Barclays

Brokerage modestly prefers Ford F.N over GM due to Ford's higher mix of U.S.-assembled vehicles, but notes Ford will also face tariff pressures and has a weaker financial position

Fourteen of 29 brokerages rate the stock "buy" or higher, 12 rate "hold", 3 rate "sell" or higher; their median PT is $54 - as per LSEG data

As of last close, GM down 15.3% YTD