The future of the auto industry is electric, autonomous, and smart.
On Wednesday, General Motors hosted an event in New York City's Meatpacking District to lay out its vision for the car business. The event included several demonstrations, including new AI and self-driving features.
For investors, the message is clear: To compete in the future, car makers must adopt the latest computing technologies, or risk getting passed in the fast lane. Fortunately for GM shareholders, their company has a plan.
It starts with electric vehicles. To be sure, U.S. EV sales have slowed since the $7,500 federal purchase tax credit expired in September 2025. Still, younger car buyers are more likely to consider an EV, says Citi analyst Mike Ward, and EVs continue to get cheaper.
GM's next-generation EV platform is expected to be 15% lighter -- lowering cost while improving range -- and contain 40% fewer parts. It will also include lithium-magnesium batteries, which cost less than some common battery chemistries while also improving energy density.
Next is autonomy. Robo-taxis are slowly penetrating U.S. cities, thanks mainly to Tesla and Alphabet's Waymo. Driver-assistance features are getting better, too. Tesla's Full Self-Driving product is capable of doing most of the driving most of the time. (FSD still requires driver supervision.)
GM will introduce fully autonomous highway driving on the Cadillac Escalade IQ in 2028. That means drivers won't have to look.
The in-car experience is changing, too. OnStar, GM's connected-car platform, marked its 30th anniversary in September 2026. It has more than 12 million subscribers in 22 markets.
The 2027 Cadillac Lyriq EV will be the first car with OnStar's new AI assistant, the company said Wednesday. Drivers can use natural language to set navigation, car functions, and more. It's similar to what Tesla's Grok assistant can do in Tesla vehicles.
Underpinning the new driving and AI features is a more powerful computer. GM's new vehicle architecture, which centralizes computing power, has 40 times the capacity, faster cellular connectivity, and 30% less wiring.
AI is affecting GM in another way: It is helping cut vehicle delivery times -- which are typically four to five years -- in half. Shorter development times -- common in China -- mean vehicles feel newer longer, and improve more quickly.
It's all good news. But the event was about the future, which doesn't always boost shares in the here and now. GM stock was down 2% in midday trading Wednesday at $75.59, while the S&P 500 was up 0.3%.
The stock drop follows Tuesday's steep 6.8% decline after GM's third-quarter earnings report. Tuesday's numbers were in line with expectations, and GM announced a huge $20 billion stock repurchase authorization. Still, investors worry auto profits will dip in 2027 because inflationary pressures are hitting auto makers' costs, as well as consumer demand for cars.
The company just isn't getting credit for stable profits despite industry headwinds, Citi's Ward says.
"GM's ability to generate an [operating profit] margin from North American Auto operations of 8% to 10% and free cash flow of $12 billion annually in 2026 to 2028, despite commodity inflation, tariffs, and BEV [restructuring] payments, are the positives supporting our Buy rating on the stock," he added in a post-earnings report.
Ward's target is $131. He is optimistic about the future.
