General Motors (GM) has outperformed Ford (F) in 2023, with GM’s stock rising 56% year-to-date compared to Ford’s 36%. As of now, GM holds approximately 17% of the U.S. market share, focusing on electric and software-defined vehicles, with expected revenue from software offerings reaching about $2 billion this year. The company’s solid performance in the Chinese market, marked by a 10% increase in vehicle sales year-over-year in Q3 2025, and significant share buybacks totaling $3.5 billion further bolster its investment case.
In contrast, Ford is recalibrating its strategy amidst slower electric vehicle (EV) adoption and rising costs, shifting focus to hybrids and more affordable EV models. The company anticipates a breakeven point for its EV unit by 2029, but it will incur approximately $19.5 billion in special charges due to its EV realignment, with $5.5 billion expected to impact cash flow primarily in 2026 and 2027. Despite these challenges, Ford Pro remains a growth engine, supported by strong sales and a dividend yield over 4%.
Overall, GM is regarded as the stronger investment option heading into 2026, as it actively works to enhance profitability and manage costs, trading at a forward earnings multiple of 7.14x compared to Ford’s 9.55x. The Zacks Consensus estimates indicate a slight sales decline for GM in 2026, but a 13% increase in earnings per share, while Ford is expected to see a 3% drop in sales but a 35% rise in earnings.
