General Motors’ board has approved a $20 billion stock buyback plan, a move aimed at bolstering the company’s share price, which executives consider undervalued. The new authorization permits GM to repurchase shares at any time. Over the past five years, the automaker has already bought back nearly $30 billion in stock.

Despite the buyback announcement, GM’s shares fell about 5 percent in early trading on Tuesday. Investors had anticipated an upward revision to the company’s earnings forecast, but instead, GM narrowed its guidance for the year and cautioned of a challenging 2027 ahead. The stock has increased by more than 40 percent over the past year but has stagnated this year and trails behind the broader S&P 500 index. Additionally, GM’s price-to-earnings ratio remains lower than that of Ford, signaling continued wariness from Wall Street despite GM’s strong cash flow and earnings.

Executives have expressed frustration over the persistent skepticism. Under CEO Mary Barra, GM has sought to reposition itself from a traditional automaker to a technology-driven company, with increased emphasis on autonomous vehicles and recruiting talent from Silicon Valley. The company has also maintained substantial returns to investors even as higher interest rates, elevated fuel prices, and global trade tensions weigh on the automotive sector.

GM is banking on sustained demand for large trucks and SUVs in the U.S. amid economic uncertainty and elevated fuel costs. The company is investing heavily to expand production of its more expensive models, including new pickups, V-8 engines, and upscale Cadillac vehicles. While total vehicle sales have declined, GM has offset volume softness by selling higher-priced models with fewer discounts, contributing to a 3 percent revenue increase during the third quarter.

“The path forward is more challenging,” Barra acknowledged during a call with analysts. Some industry observers remain concerned about GM’s sluggish sales volume amid tightening consumer budgets, rising commodity costs, and the complex rollout of new pickup trucks. Nonetheless, Barra expressed confidence that GM can manage the near-term disruptions and deliver improved results in 2027, contingent on stable demand and cost trends.

The company also plans to provide an update this week on its progress toward launching eyes-off, hands-free automated driving assistance by 2028—a goal announced last year amid a strategic pivot that scaled back electric vehicle ambitions following regulatory rollbacks during the Trump administration.

Over the past decade, GM has repurchased approximately $43.4 billion in shares, reducing its outstanding common shares by 45 percent. The new buyback authorizes follows the recent completion of a $6 billion repurchase program initiated earlier this year.

In a recent interview, Barra reiterated her belief that GM shares remain undervalued and emphasized her focus on delivering shareholder returns during her 12-year tenure. “Company spending has got to generate a return, because this is our owners’ money,” she said.